Problem 1: (14 points) Consider the following extensive form game. Player I L R Player 3...

Transcribed Image Text:

Problem 1: (14 points) Consider the following extensive form game. Player I L R Player 3 Player 2 b d Player 1 a Player 1 h g 15 5 0 1 6 D 54 3 5 4 220 5 0 1 0 1 7 a) (2 points) How many subgames does this game have? b) (8 points) Carefully write down all possible strategies of the 3 players in the game above. c) (4 points) Find the subgame perfect Nash equilibrium of the game, clearly specifying the strategies for each player that lead to the subgame perfect Nash equilibrium (SPNE). Problem 1: (14 points) Consider the following extensive form game. Player I L R Player 3 Player 2 b d Player 1 a Player 1 h g 15 5 0 1 6 D 54 3 5 4 220 5 0 1 0 1 7 a) (2 points) How many subgames does this game have? b) (8 points) Carefully write down all possible strategies of the 3 players in the game above. c) (4 points) Find the subgame perfect Nash equilibrium of the game, clearly specifying the strategies for each player that lead to the subgame perfect Nash equilibrium (SPNE).