Consider the following game. There are two payers, Player 1 and Player 2. Player 1 chooses a row (10, 20, or 30), and Player 2 chooses a column (10/20/30). Payoffs are in the cells of the table, with those on the left going to Player 1 and those on the right going to player 2.
Suppose that Player 1 chooses his strategy (10, 20 or 30), first, and subsequently, and after observing Player 1’s choice, Player 2 chooses his own strategy (of 10, 20 or 30). Which of the following statements is true regarding this modified game?
I. It is a simultaneous move game, because the timing of moves is irrelevant in classifying games.
II. It is a sequential move game, because Player 2 observes Player 1’s choice before he chooses his own strategy.
III. This modification gives Player 1 a ‘first mover advantage’.
A) I and II
B) II and III
C) I and III
D) I only
E) II only
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