Don't use ai to answer I will report your answer Solve it Asap with explanation and calculation P1 gets $45UpP2 gets $150UpP1 gets $100DownP2 gets $100UpP1 gets $95DownP2 gets $95P1 gets $15DownP2 gets $25Player 1Player 2In the game above, what is/are the EFFICIENT sub-gameperfect Nash equilibrium?A) (down, up)B No EFFICIENT equilibrium existsC (up,down)(D) (down, down)E (up,up)

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Answered: P1 gets $45 Up P2 gets $150 Up P1 gets…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.9P

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Question

Don't use ai to answer I will report your answer Solve it Asap with explanation and calculation

P1 gets $45
Up
P2 gets $150
Up
P1 gets $100
Down
P2 gets $100
Up
P1 gets $95
Down
P2 gets $95
P1 gets $15
Down
P2 gets $25
Player 1
Player 2
In the game above, what is/are the EFFICIENT sub-game
perfect Nash equilibrium?
A) (down, up)
B No EFFICIENT equilibrium exists
C (up,down)
(D) (down, down)
E (up,up)

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