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Question 5. Building on the previous question, now suppose that, should Congress fail to compromise, the Leader gets to choose whether or not to impose
Question 5. Building on the previous question, now suppose that, should Congress fail to compromise, the Leader gets to choose whether or not to impose the punishment. That is, the game is now the one represented in Figure 3: 1. In this revised game, write down all of the Leader's strategies and write down all of the Congress's strategies. 2. In this revised game, write down any one subgame perfect Nash equilibrium. What happens in this equilibrium? 3. Explain how comparing the equilibrium outcomes in these two models illustrates how an inability to commit can make a player worse off. Leader Figure 3: Question 5
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