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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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