Experimental Evidence on the Centipede Game Homework Help

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In Economics, game theory is a vast and crucial topic which every student should have a clear understanding as it consists of various other hypothesis and scenarios which are related. Our Experimental evidence on the centipede game homework help provides students with everything which is needed by a student while trying to write a high-quality assignment or homework. Every student needs help and we do provide them with best tutors and best materials for their work.

The Centipede Game in Game Theory

In the game theory, this game was first introduced in 1981 by R. Rosenthal. This game of extensive form is played between two players who take turns to choose an increasing pot’s large share or pass it to another player.

The payoffs of the game are arranged in such a way that if one player passes it to the other player, he or she takes it on next round. One would receive less if he or she took that pot on the ongoing round. The traditional version of this game had maximum of 100 rounds. Any game which follows this structure but has different rounds in total it is known as centipede game. Ask us for our Experimental evidence on the centipede game assignment help for more information.

Backward Induction and Analysis of Equilibrium

Theoretical tools of the standard game predict that first player defects on round one taking pile of coins. In this game pure strategy has set of plays or actions and mixed strategy is probability distribution which is made over the possibilities of pure strategies. Several Nash equilibria’s pure strategy is there in this game along with many Nash equilibria’s mixed strategy. But there is just one perfect equilibrium of sub game. Know more about tools from our Experimental evidence on the centipede game assignment help.

First player’s defection is perfect equilibrium’s unique sub game and is required by all Nash equilibrium. It is established by simple backward induction. For example, when players reach final round of this game, second player will get more by defecting and receiving large share of pot.

Nash equilibria in centipede game are found in large number but in the game, first player defects on first round and in next round second player and from passing this are what dissuades first player. Rational strategies not required in Nash equilibrium at each point in this game as in perfect equilibrium of sub game. It means strategies which are cooperative but are never reached in later rounds could be in Nash equilibrium. Order our Experimental evidence on the centipede game homework help for gathering more information on this.

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