QUESTION 25

Consider the following new game that is similar to the game in the capsule video "Applied Session 2" but with different payoffs. What is the rollback or subgameperfect equilibriumof this new game?

Remember that C stands for contributing, and D for not contributing.

Keep in mind that the highlighted branches with a darker black and little arrows do not indicate the solution of this new game.In fact, this highlighted branches do not provide any valuable information for solving this new game.

Contribute . , 5, 5 T Contribute d 2, 2, 4 Don't N b T Contribute . 2, 4, 2 Contribute Don't e Don't 0, 3, 3 E a Contribute . 4, 2, 2 Don't Contribute T Don't 3, 0, 3 C N Contribute . 3, 3, 0 Don't T Don't . 1, 1, 1 O {C, CD, CDDD} O {D, DC, DCCD} O {D, CD, CDCC} O {c, CC, CDCD}