image
FIGURE 12.3 Sequential “Play or Pass” Game
In the “Play or Pass” game, Dan must first decide whether to choose “Play” or “Pass” (node A). If Dan calls “Play,” he earns a payoff of 1 and Patrick loses 10. If Dan decides to opt for “Pass,” Patrick will choose “Play” at node B, yielding Dan a payoff of zero and Patrick a payoff of 12. Therefore, at the Nash equilibrium, Dan will choose “Play” and earn 1.