Understanding Our Economy — Interactive Game Trees · CTREE 2026
The polluting firm. Blue branches show Bunker's choices.
Community member affected by pollution. Red branches show Worker's choices.
The backward induction equilibrium path — what rational players will actually do.
A dominated action — the player has a strictly better option, so rational players won't choose this.
This is a sequential game from Chapter 1. Bunker moves first, then the Worker responds. Press Next step → to build up the game tree one element at a time.
The Worker is now Mayor — and moves first. Red branches show the Mayor's policy choices.
The firm now responds to the Mayor's decision. Blue branches show Bunker's choices.
Compare the Worker's payoff here (159) to Ch.1 (51) — same game, order of play reversed.
Bunker's dominated action — choosing the opposite gives a strictly higher payoff.
In Chapter 2 the Worker becomes Mayor and moves first. Same players, same payoffs — but the order of play changes everything. Press Next step → to build the tree.
Keyboard: → next · ← back · r restart · 1/2 switch chapter