Question: 20) For this and the following question, consider the dynamic game below. The names P1 or P2 over the black nodes denote which of the

20) For this and the following question, consider the dynamic game below. The names P1 or P2 over the black nodes denote which of the two players makes each choice. The letters on the branches A, B, C, D, E, F-represent actions. P1 A B P2 D (1, 4) (1, 1) (3, 1) (2, 3) (3, 2) (1, 1) Which of the options below is an example of a possible pure strategy for player 2? Hint: It does NOT have to be the optimal strategy; this question is about what constitutes an strategy in a dynamic game. (a) Play A. (b) Play C. (c) Play C if Pl chooses A, or D if P1 chooses B. (d) Play C if P1 chooses E, or D if P1 chooses F. (e) None of the options above is correct. 21) What is the payoff for both players in the SPNE of this game? (a) (1,1) (b) (3,2) (c) (1,4) (d) (2,3) (e) This game has no SPNE
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
