Consider the extensive form psychological game described by Figure 15.8 in which Player 1 first can choose either Down, resulting in a reward of 0 for both players, or Up, resulting in a node in which Player 2 can choose either Up or Down. If Player 2 chooses Up, Player 1 receives a reward of , where  is Player 1’s belief regarding Player 2’s belief of the probability that Player 1 will choose Up. Solve for all the psychological equilibria. Which of these equilibria are subgame perfect?

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