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  3. problem 220 points consider the following game in the first...

Question: problem 220 points consider the following game in the first...

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Problem 2.(20 points) Consider the following game: In the first step, Alice has two $10 bills and can take one of the following two actions: (i) she can give S20 to Bob or (ii) she can give one of the S10 bills to Bob. All the money will be used to buy popcorns before the movie they will see. Each one dollar of popcorn gives one unit of payoff for the player who buys it. In the second step, they will each choose a movie, X or Y, and the payoffs from just watching the movie are determined according to the following matrix. When they choose a movie, assume that Bob chooses first, and Alice makes a choice only after observing Bobs choice. Vuand the payoffs from just Bob Alice X (16,12)(0, 0) Y(0,0) (12, 16) a. Present the game as an extensive form using a game tree. b. Write down the pure-strategy sets for both players. c. Present the game in matrix form d. Find all the Nash equilibria of the game (both pure and mixed).

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