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 Rules Mt Gov 2021-2025

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were good or bad idea it is a sequential Dynamic game with two stages Taliban moves first it decides whether to abduct the Italian government moves in the second stage choosing whether to pay the ransom we draw the game CH and use the backw induction approach to find the subg perfect ntional equilibrum we first determine the government's response in the second stage to each possible action by the Taliban given that the Taliban kidnaps the journalist the government gets five if it pays the ransom but zero if not the government's best response is to pay the ransom we underly its pay off five and add an arrow on the pass given that the Taliban does not abduct the government's best response is not to Ransom we underly its payoff zero and add an arrow on the pass next we figure out the Taliban decision in the first stage given the Italian government's responses if the Taliban engages in adduction it knows the government will pay the ransom and it will un 10 if the Taliban do

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