Draw this situation (handwritten) as an extensive form game. In a first move the landlord decides about y.
Game Theory Consider the following conflict among tenant and landlord about a deposit: When the rental agreement starts, the tenant leaves a deposit x with landlord. On termination of the rental agreement, the landlord returns y. The returned amount y is either the full deposit or a fraction: y ∈ [0, x]. The tenant can accept or refuse … Read more