1. Considering following sequential game. Player 1 chooses either action A or action B. Player 2,...

 

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1. Considering following sequential game. Player 1 chooses either action A or action B. Player 2, after observing Player 1's action, chooses either action a or action b. The payoff matrix for combinations of actions are as follows: a Player 2 b A Player 1 0,2 3,3 B 4,5 -1,3 (a) Represent the game in extensive form, highlighting all the subgames. (b) What is the normal form representation of the game? (c) Find the Subgame Perfect equilibrium strategies and state the SPNE outcome. 1. Considering following sequential game. Player 1 chooses either action A or action B. Player 2, after observing Player 1's action, chooses either action a or action b. The payoff matrix for combinations of actions are as follows: a Player 2 b A Player 1 0,2 3,3 B 4,5 -1,3 (a) Represent the game in extensive form, highlighting all the subgames. (b) What is the normal form representation of the game? (c) Find the Subgame Perfect equilibrium strategies and state the SPNE outcome.