Extensive Form Games: Perfect Information 19
chooses the latter, then the tree comes to an end, which represents “game over.” If, instead, he chooses to kidnap Orlando, then Vivica is informed of the kidnapping and decides whether to pay the ransom. In response to Vivica’s de- cision, Guy decides whether to release Orlando or kill him. The assumption is that Guy observes whether ransom is paid prior to making this choice. (How to handle a simultaneous exchange will be discussed later in the chapter.)
There is a total of five outcomes to this game, each of which corresponds to a path through the decision tree or, equivalently, a sequence of actions. These outcomes are listed in TABLE 2.1. One outcome is for there not to be a kidnap- ping. If there is a kidnapping, there are four possible outcomes, depending on whether ransom is paid and whether Orlando is killed or released.
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