Question: Consider the following sequential game. Wally first chooses L or H. Having observed Wally's choice, Elizabeth chooses between A and F. The payoffs are as


Consider the following sequential game. Wally first chooses L or H. Having observed Wally's choice, Elizabeth chooses between A and F. The payoffs are as follows. If Wally chose L and Elizabeth chose A, the payoffs are 20 to Wally and 30 to Elizabeth. If Wally chose L and Elizabeth F, the payoffs are 25 to Wally and 40 and to Elizabeth. If Wally decides to opt for H and Elizabeth A, the payoffs are 30 and 20 to Wally and Elizabeth, respectively. Finally, if Wally opts for H and Elizabeth F, the payoffs are 20 to Wally and 50 to Elizabeth. What is the outcome in the subgame perfect equilibrium of this game? O (H, A) O ( L, F) O ( H, F ) O (L, A) O (L, F) and (H,A)
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