Sequential-move matching pennies Player Each of the two players has a penny Player 1 first chooses H Whether to show the head or the tail Player 2 Player 2 After observing player 1's choice, player 2 chooses to show head or tail H T H T Both players know the following rules If two pennies match (both heads or both tails) then player 2 wins player 1s penny Otherwise, player 1 wins player 2's pennySequential-move matching pennies ◼ Each of the two players has a penny. ◼ Player 1 first chooses whether to show the Head or the Tail. ◼ After observing player 1’s choice, player 2 chooses to show Head or Tail ◼ Both players know the following rules: ➢ If two pennies match (both heads or both tails) then player 2 wins player 1’s penny. ➢ Otherwise, player 1 wins player 2’s penny. 4 Player 1 Player 2 H T -1, 1 1, -1 H T Player 2 H T 1, -1 -1, 1