Question: Consider the game in extensive form: 1 (1,1,2) R G D (1,3,2) 3 L C 2 B S (4,3,1) 1 (a,2,2) A 31 D

Consider the game in extensive form: 1 (1,1,2) R G D (1,3,2)

Consider the game in extensive form: 1 (1,1,2) R G D (1,3,2) 3 L C 2 B S (4,3,1) 1 (a,2,2) A 31 D (2,3,2) C (2,3,3) Find all values of a such that there exists a SPNE where player 1 plays L. Give such an equilibrium. Assume the condition you just stated on a. Give a Nash equilibrium that is not SPNE where player 1 plays L. Can you find values for a (with a > 0), so that player 2 plays G in a Nash equilibrium? In a SPNE? Explain.

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To find all values of a such that there exists a Sequentially Perfect Nash Equilibrium SPNE where player 1 plays L we need to analyze the game tree an... View full answer

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