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5. Instead of choosing Game A or Game B in the first stage, player 1 chooses either game B or directly which action to play
5. Instead of choosing Game A or Game B in the first stage, player 1 chooses either game B or directly which action to play in game A. R R Game Game B : U (10,5) (0,0) U (6,6) (0,0) D (5,10) (0,0) D (0,0) (0,0) (a) Write the game in extensive form. (b) Solve for all SPNEs of the modified game. (c) Do all the SPNEs give intuitively reasonable predictions? Why or why not? (Hint: think about what the modification of the payoff to game A entail for player 2 in that game and how the predictions contrast with the case where the game is chosen first, then the action.)
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