Computers and Technology

During 1962, the soviet union installed nuclear missiles in cuba. when the us found out, president kennedy discussed the options (i) do nothing, (ii) air strike on the missiles, (iii) a naval blockade of cuba. jfk decided on the naval blockade. negotiations ensued, and khrushchev threatened to escalate the situation; both sides believed that nuclear war was a possibility. finally, the soviet union agreed to remove the missiles if the united states agreed not to invade cuba. privately, kennedy agreed to remove some missiles based in turkey. in order from best to worst, khrushchev’s preference ordering is: missiles allowed, do nothing, acquiesce to blockade, acquiesce to air strike (lose resources), escalate after air strike (risk war but jfk is the initial aggressor), escalate after blockade (risk war and khrushchev is the initial aggressor). jfk’s preference ordering is: blockade and have khrushchev acquiesce, air strike and have khrushchev acquiesce (be tough but use resources), status quo, allow missiles, khrushchev escalates after blockade, khrushchev escalates after air strike. draw a game tree for this game, solve the game, and identify all subgame perfect equilibria. (2 points)

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During 1962, the soviet union installed nuclear missiles in cuba. when the us found out, president k...

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