True of False 1.The SPNE outcome of a centipede game does not depend on when the

Question

True of False

1.The SPNE outcome of a centipede game does not depend on when the game has to stop exogenously.

2.If we assume that in an Ultimatum game, a player can only divide the money in multiples of dollars, then there can be more than one equilibrium outcomes.

3.Suppose the first person to make offer in an alternating offer bargaining game with T periods is player 1. Player 1’s payoff is higher if T is 211 than when T is 213 if both players have the same discount factor that is strictly less than 1.

4.In a dynamic game with complete information, a strategy should specify what action to take in the future given any possible history up to that time.

Explanation / Answer

I will answer the first question. Please post separately for each question. 1. True. Backward induction solves the centipede game so that player 1 plays down on the first move. This is true no mater where the backward induction process is started, so it doesn't matter how long the centipede game is.

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