Consider the following extensive-form game. P2 B. By B. P. 13 14 A, 12 12 17...

 

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Consider the following extensive-form game. P2 B. By B. P. 13 14 A, 12 12 17 13 15 14 10 17 16 10 a. Write down all strategies of players (0.2p). b. Transform the game to a normal form, form best responses (in table only) and find all pure strategy Nash equilibria (NE) (0.8p). c. Indicate which NE you found are subgame perfect. Why do you think so? Choose one NE that is not subgame perfect and show why it is not SPNE. (0.5p) Consider the following extensive-form game. P2 B. By B. P. 13 14 A, 12 12 17 13 15 14 10 17 16 10 a. Write down all strategies of players (0.2p). b. Transform the game to a normal form, form best responses (in table only) and find all pure strategy Nash equilibria (NE) (0.8p). c. Indicate which NE you found are subgame perfect. Why do you think so? Choose one NE that is not subgame perfect and show why it is not SPNE. (0.5p)

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