Joe $40 Joe makes $80 GREEN Sally makes $20 Sally makes $60 Sally Joe makes $90 Joe makes $100 YELLOW Sally makes $30 Sally makes $40 b) Now, suppose Joe can move first (i.e. choosing his color before Sally), show what color Joe would choose and how much Joe would be willing to pay to move first. Answer b): Joe be willing to pay up to 10 (90 80) to move first. –
Sally GREEN Joe $40 Sally makes $20 Joe makes $80 Sally makes $60 YELLOW Joe makes $90 Sally makes $30 Joe makes $100 Sally makes $40 b) Now, suppose Joe can move first (i.e. choosing his color before Sally), show what color Joe would choose and how much Joe would be willing to pay to move first. Answer b): Joe be willing to pay up to 10 (90 – 80) to move first.