Biology Forums - Study Force

Other Fields Homework Help Economics Topic started by: corie on Oct 25, 2017



Title: Joanna has a credit card account with Card Bank. Card Bank's available strategies are tp raise ...
Post by: corie on Oct 25, 2017
Joanna has a credit card account with Card Bank.  Card Bank's available strategies are tp raise Joanna's credit card interest rate or do nothing.  Joanna's available strategies are to transfer her Card Bank account balance to another creditor or do nothing.  If Card Bank raises Joanna's interest rate and Joanna does nothing, Card Bank increases profits by $1,000 while Joanna receives -$1,000.  If Card Bank raises Joanna's interest rate and Joanna transfers her account to another creditor, Card Bank receives -$300 while Joanna receives -$100.  If Card Bank does nothing and Joanna does nothing, each player receives $0.  If Card Bank does nothing and Joanna transfers her account to another creditor, Card Bank receives -$300 while Joanna receives -$150.  Diagram the game tree for this sequential game.  Indicate any Nash equilibria.


Title: Re: Joanna has a credit card account with Card Bank. Card Bank's available strategies are tp raise ...
Post by: oracledarren on Oct 25, 2017
Content hidden