Business, 10.06.2020 17:57 amayarayne5

A thug wants the contents of a safe tells the safe's owner, " will kill you if you don't open the safe, and let you live if you do." Similar games appear in many films, including Die Hard, Crimson Tide, and The Maltese Falcon. Assume for simplicity the game tree is illustrated in the figure to the right. 1. Who moves first?
2. Should the owner believe the threat and open the safe?
3. What is the equilibrium? Does the safe's owner believe the thug's threat? Does the safe's owner open the safe?
4. What is the subgame perfect Nash equilibrium?
A. The Nash equilibrium is for the owner to open the safe and for the thug to kill regardless of whether the owner opens the safe.
B. The Nash equilibrium is for the owner to open the safe and for the thug to not kill regardless of whether the owner opens the safe.
C. The game does not have a Nash equililbrium.
D. The Nash equilibrium is for the owner to not open the safe and for the thug to only kill if the owner does not open the safe.
E. The Nash equilibrium is for the owner to open the safe and for the thug to only kill if the owner does not open the safe.

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A thug wants the contents of a safe tells the safe's owner, " will kill you if you don't open the sa...

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