Remember the game of Matching Pennies: First, Player 1 choosesthe side ofher penny (Heads or Tails) and conceals her choice fromPlayer 2. Player 2then chooses a side of his penny. If they match,Player 1 takes a dollar fromPlayer 2; if they mismatch, Player 1gives a dollar to Player 2.
1. Now consider the following variation of that game. After thecoins areuncovered, Player 1 can choose to veto the game or not. IfPlayer 1chooses to veto, then no transfer gets made (both playersget $0).
(a) (5 points)Write this game in extensive form
(b) (5 points) How many strategies does Player 1 have?
2. Now consider a different variation: Player 1 has to choose toveto or notbefore picking a side of her penny. If she chooses notto veto, then thegame proceeds as regular Matching Pennies.
(a) (5 points) Write this game in extensive form.
(b) (5 points) Write this game in normal form.
