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(i) (1 mark) Draw the relevant game tree associated the sequential game described above. Clearly label nodes/information sets, who moves at each node/information sets, actions,

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(i) (1 mark) Draw the relevant game tree associated the sequential game described above. Clearly label nodes/information sets, who moves at each node/information sets, actions, and payoffs (at terminal nodes). [No explanation needed] (ii) (1 mark) Draw the payoff matrix for the normal form game associated with the sequential move game described above. State the two Nash equilibria in pure strategies. [ No explanation needed] (iii) (3 marks) Consider the two Nash equilibria found in (b). Is any one of them a Perfect Bayesian Equilibrium (PBE)? Explain. In particular, consider each NE and argue why they are or are not part of a PBE. [Note: A complete description of PBE must specify beliefs as a part of description of the equilibrium.]

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