Question
Consider a two-player, sequential-move game where each player can choose to play right or left. Player 1 moves first. Player 2 observes players 1's actual
Consider a two-player, sequential-move game where each player can choose to play right or left. Player 1 moves first. Player 2 observes players 1's actual move and then decides to move right or left. \f player 1 moves right, player 1 receives $0 and player 2 receives $15. If both players move /eft, player 1 receives -$10 and player 2 receives $8. If player 1 moves /eft and player 2 moves right, player 1 receives $10 and player 2 receives $10.
(a) Write the above game in extensive form.
(b) Find the Nash equilibrium outcames to this game,
(c) Which of the equilibrium outcomes is most reasonable? Explain.
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