Page 200 - Probability Demystified

CHAPTER 11 Game Theory 189

Fig. 11-1.

one white card, Player B wins $2.00. A payoff table for the game would
look like this:

Player B’s Card:

Player A’s Card: Black White

Black $5 $2

White $2 $1

The tree diagram for the game is shown in Figure 11-2.

Fig. 11-2.
Player A thinks, ‘‘What about a strategy? I will play my black card and
hope Player B plays her black card, and I will win $5. But maybe Player B
knows this and she will play her white card, and I will lose $2. So, I better