Construct the Game Tree for a Truel Played Sequentially, for Which

question 24

Short Answer

Construct the game tree for a truel played sequentially, for which the outcomes have the following payoffs. What are the optimal strategies for this game?
$\begin{array}{rr}\text {Sole survivor }&\text { 4 point }\\\text {One of two survivors }&\text { 3 point }\\\text {One of three survivors}&\text { 2 point }\\\text {Nonsurvivor}&\text { 1 point }\\\end{array}$

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Definitions:

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing a measure of efficiency and profitability.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on what the seller believes the customers will pay.

Antitrust Regulations

Laws designed to enhance competition in the market by preventing monopolistic practices and promoting fair and free competition.

Nondiscriminating Monopolist

A monopolist who charges all consumers the same price for its product, without any price discrimination.