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5. Consider the following game in extensive form, with Players 1 and 2. U . (8,2) 2 U D . (6,3) 1 U . (5,3)
5. Consider the following game in extensive form, with Players 1 and 2. U . (8,2) 2 U D . (6,3) 1 U . (5,3) d 2 D . (9,4) a. Write this game in normal form and circle any Nash equilibria. b. Which of these Nash equilibria is subgame perfect? Explain. c. Using the "folding back" technique, what actions do the players take along a subgame perfect equilibrium path? Explain. d. Would it benefit Player 2 to pre-commit to a strategy? Explain. e. Change the payoffs so that it pays Player 2 to pre-commit to U. Prove your answer. Explain
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