Consider the game represented below. Player 1 CDE Player 2 Hau H F G 2,2 0,0 0,0 0,0 0,0 1, -1 0, 0-1, 1-1, -1

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Chapter1: Making Economics Decisions
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QUESTION 4
Consider the game represented below.
Laislog 1 Phlizene-and diodecons
Player 1
B
Player 1
CDE
Player 2
F
G
H
2,2
0,0
0,0
0,0
0,0 1, -1
0, 0-1, 1-1, -1
mon am
Player 2
J
3,4
K
ciklas
momenos lo gryt doo's yot jaleveane
4,3
A. How many pure strategies are available to each player? List them for each player.
B. What is (are) the subgame-perfect Nash equilibrium (equilibria)? Explain.
C. Give an example of a Nash equilibrium of this game that is not subgame-perfect. Why is
this Nash equilibrium not credible? Be specific.
Transcribed Image Text:QUESTION 4 Consider the game represented below. Laislog 1 Phlizene-and diodecons Player 1 B Player 1 CDE Player 2 F G H 2,2 0,0 0,0 0,0 0,0 1, -1 0, 0-1, 1-1, -1 mon am Player 2 J 3,4 K ciklas momenos lo gryt doo's yot jaleveane 4,3 A. How many pure strategies are available to each player? List them for each player. B. What is (are) the subgame-perfect Nash equilibrium (equilibria)? Explain. C. Give an example of a Nash equilibrium of this game that is not subgame-perfect. Why is this Nash equilibrium not credible? Be specific.
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