ECN 200C Midterm: ECN 200C Midterm Version 1 Spring 2010
Document Summary
Answer all questions (total 100 points: [25 points] there are 12 stars arranged in a circle. Player 1 can remove one star or two contiguous (= next to each other) stars. Then it is player 1"s turn, followed by player 2, etc. The winner is the player who ends the game by removing the last star(s) (i. e. the player after whose move no stars are left). Notice that the rules of the game are such that, after each move, the remaining stars always form a continuous arc (i. e. with no gaps). (a) [15 points] one of the two players has a winning strategy. Neumann-morgenstern payoffs; the first number is player 1"s payoff and the second number is player 2"s payoff): C (a) [5 points] assume first that the game is played simultaneously. Find all the nash equilibria. (b) [10 points] assume now that player 1 moves first, player 2 observes 1"s choice and moves second.
