Question

Please Explain!

Consider the following game: Mike and Beth decide to go to a movie. They are contemplating whether to see a comedy of whether to see a drama. Both Mike and Beth would rather go to the movie together. If they go to different movies both get a payoff of 0. But Mike prefers comedy while Beth prefers drama. If they go to a comedy, Mike's payoff is 5 while Beth's payoff is 2. And if they go to see a drama, Mike's payoff is 2 while Beth's payoff is 5. Suppose both Mike and Beth must simultaneously choose whether to see a comedy or a drama.

A) Represent this game in a normal form. Clearly state who are the players, what choices do they have, and what is their payoff matrix

B) Represent this game in extensive form. Assume Mike makes his choice at the root of the game tree. Define Beth's information set in this game. Write down Mike and Beth's strategy sets.

Answer 1