What is a sequential game? How are decision trees used to analyze sequential games?
What will be an ideal response?
In a sequential game one player (firm) acts first, and then other players respond. A decision tree allows players to map out how the other player(s) will respond to their actions, finding the action that yields the highest payoff.
You might also like to view...
The implementation of the assembly line is an example of how
A) changes in the organization of production improve productivity. B) neutral technical change improves productivity. C) non-neutral technical change can decrease productivity. D) labor saving technical change increases economy-wide unemployment.
A leftward shift of a product supply curve might be caused by:
A. some firms leaving an industry. B. an increase in consumer incomes. C. an improvement in the relevant technique of production. D. a decline in the prices of needed inputs.