DESCRIBING REAL LIFE GAMES ix

DESCRIBING REAL LIFE GAMES ix

5. Solve the following centipede game. S stands for Stop and C stands for con-tinue. there are two players, 1 and 2, and the player that chooses at each note
in
S S S S S S
C C C C C C 1 1 1 2 2 2
1, 0 0, 2 3, 1 2, 4 5, 3 4, 6
6, 5
6. In the preceding game what do you think of the solution you found? Can you
think of anything to improve the result?
7. What is a centipede game? Why is a centipede game interesting?
8. Replace the Xs in the following centipede game with payoffs that will in-duce a solution at the 5th exit (Player 1 will choose S at the 5th leg of the
centipede).
S S S S S S
C C C C C C 1 1 1 2 2 2
X, X X, X X, X X, X 5, 5 X, X
X, X