(Solved by Humans)-Using the payoff table to complete the two sequential game trees

Question

?Using the payoff table to complete the two sequential game trees below.? In the first game, let St Petersburg Times move first and in the second game, let Tampa Tribune move first.? Solve both games using the roll-back method and clearly mark the solution path on the game tree.

1. The Tampa Tribune and the St. Petersburg Times compete for readers in the Tampa Bay market
for newspapers. Recently, both newspapers considered changing the prices they charge for their
Sunday editions. Suppose they considered the following payoff table for making a simultaneous
decision to charge either a low price of $0.50 or a high price of $1.00.

St. Petersburg Times
Low Price
High Price
Low

$45,000 , $30,000

$35,000 , $20,000

$40,000 , $45,000

$50,000 , $40,000

Tampa
Tribune
High

Now, suppose the newspaper pricing decision is made sequentially. Using the payoff table to complete
the two sequential game trees below. In the first game, let St Petersburg Times move first and in the
second game, let Tampa Tribune move first. Solve both games using the roll-back method and clearly
mark the solution path on the game tree.

a. Which of the newspapers (or neither or both) has a first-mover advantage? Which has a secondmover advantage?

b. Can you predict which newspaper is likely to go first in this sequential decision? Explain.