Consider the Sequential Matching Pennies Game. Now assume player 1 is allowed to quit the game in the initial node, hence she has three actions. If she quits the game, the game ends and both players receive O payoff. If she chooses Head or Tail, the game is played as illustrated in the lecture. Which of the following is TRUE for this game? The set of pure strategy Nash equilibria and the set of subgame perfect equilibria are identical OB. There are pure strategy Nash equilibrium which are not subgame perfect equilibrium OC. There are subgame perfect equilibrium which are not Nash equilibrium
Consider the Sequential Matching Pennies Game. Now assume player 1 is allowed to quit the game in the initial node, hence she has three actions. If she quits the game, the game ends and both players receive O payoff. If she chooses Head or Tail, the game is played as illustrated in the lecture. Which of the following is TRUE for this game? The set of pure strategy Nash equilibria and the set of subgame perfect equilibria are identical OB. There are pure strategy Nash equilibrium which are not subgame perfect equilibrium OC. There are subgame perfect equilibrium which are not Nash equilibrium
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Consider the Sequential Matching Pennies Game. Now assume player 1 is allowed to quilt the game in the initial node, hence she has three actions. If she quits the
game, the game ends and both players receive O payoff. If she chooses Head or Tail, the game is played as illustrated in the lecture. Which of the following is TRUE
for this game?
A.The set of pure strategy Nash equilibria and the set of subgame perfect equilibria are identical
B. There are pure strategy Nash equilibrium which are not subgame perfect equilibrium
OC. There are subgame perfect equilibrium which are not Nash equilbrium
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