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Assignment help 2441

Imagine a two player game that proceeds as follows. A pot of money is created with $6 in it initially. Player 1 (Alice) moves first, then player 2 (Bob), then player 1 again and finally player 2 again. At each player’s turn to move, he or she has two possible actions: grab (G) or share (S). If the player grabs, s/he gets 2/3 of the current pot of money, the other player gets 1/3 of the pot and the game ends. If s/he shares then the size of the current pot is multiplied by 3/2 and the next player gets to move. At the last stage in which Bob moves, if he chooses to share then the pot is still multiplied by 3/2 , and Bob gets 1/3 of the pot and Alice gets 2/3 of the pot.

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