Question: Consider a two- player, sequential- move game where each player can choose to play right or left. Player 1 moves first. Player 2 observes player

Consider a two- player, sequential- move game where each player can choose to play right or left. Player 1 moves first. Player 2 observes player 1’s actual move and then decides to move right or left. If player 1 moves right, player 1 receives $ 0 and player 2 receives $ 25. If both players move left, player 1 receives $ 5 and player 2 receives $ 10. If player 1 moves left and player 2 moves right, player 1 receives $ 20 and player 2 receives $ 20.

a. Write the above game in extensive form.

b. Find the Nash equilibrium outcomes to this game.

c. Which of the equilibrium outcomes is most reasonable? Explain.

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