E: entry N: do nothing P: prey B : Bertrand Equilibrium

Key tool in any sequential game is a game tree

V-, Vp
P
E
M
H

B
V+, Vb

O, Vm
N

Key tool in any sequential game is a game tree

V-, Vp
P
E
M
H

B
V+, Vb

O, Vm
N

Mall Entry Game NE:

SH = N and SM(E) = P
Its a Nash equilibrium if Manny REALLY does do P

Key tool in any sequential game is a game tree

v-, Vp
P
E
M
H

B
V+, Vb

O, Vm
N

Credible Sm(E) if Vb >Vp

Credible Nash Eq: SH = N SH(E) = P only if Vp > Vb

v-, Vp

M
H

O, Vm

Vm-f

V+, Vb