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In the following table of static game between player 1 and player 2. Player 2 Left Center Right High 5.5 3.8 2.6 Player 1 Middle

In the following table of static game between player 1 and player 2.

Player 2

Left Center Right

High 5.5 3.8 2.6

Player 1Middle 3.4 5.3 5.7

Low 9.6 6.5 4.5

Answer the following questions

a)What is (are) the pure-strategy Nash equilibrium(ia) in this game? How does dominant strategy play a role in deriving the equilibrium?

b) Suppose the game is played sequentially, with player 1 moving first. Draw an extensive form game and find subgame perfect Nash Equilibrium. Does it lead to the same equilibrium you found in the static game?

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