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subgame perfect equilibrium QUESTION B1 (7 marks total) Alice and Bob play the following extensive form game. There are two periods. Alice moves first in

subgame perfect equilibrium

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QUESTION B1 (7 marks total) Alice and Bob play the following extensive form game. There are two periods. Alice moves first in period 1 and chooses :51 E [07 10]. In period 2, Bob observes Alice's action and chooses $2 6 [07 10]. The utility function of player i 6 {Alice, Bob} is ui(a:1,x2) = 2749 x1 2:2) x?- if 1:1 -l (132 S 9 and umhxg) 2 m7; if 51:1 l m > 9. Find all subgame perfect equiliabria of this game. Show your work. [Note that you need to find strategies for each player, just listing actions on the equilibrium path is not enough.]

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