Question: EXERCISE 1 7 3 . 3 ( Voting by alternating veto } Find the subgame perfect equilibria of the game in Exercise 1 6 3

EXERCISE 173.3(Voting by alternating veto} Find the subgame perfect equilibria of the game in Exercise 163.2. Does the game have any Nash equilibrium that is not a subgame perfect equilibrium? Is any outcome generated by a Nash equilibrium not generated by any subgame perfect equilibrium? Consider variants of the game in which player 2's preferences may differ from those specified in Exercise 163.2. Are there any preferences for which the outcome in a subgame perfect equilibrium of the game in which player 1 moves first differs from the outcome in a subgame perfect equilibrium of the game in which player 2 moves first?
Exercise 163.2(Voting by alternating veto) Two people select a policy that affects them both by alternately vetoing policies until only one remains. First person 1 vetoes a policy. If more than one policy remains, person 2 then vetoes a policy. If more than one policy still remains, person 1 then vetoes another policy. The process continues until a single policy remains unvetoed. Suppose there are three possible policies, X, Y, and Z, person 1 prefers X to Y to Z, and person 2 prefers Z to Y to X. Model this situation as an extensive game and find its Nash equilibria.

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