Question: Consider the game depicted below. Player 1 decides between A or B in stage 1 of the game, and between G or H in stage 3 (if it is reached). Player 2 decides between C or D if Player 1 chose A, or between E or F if Player 1 chose B, in stage 2 of the game.
(a) List all the possible pure strategies for each player in this game and the payoffs from each pair of strategies in a matrix.
(b) Identify the Nash Equilibria strategies and payoffs.
(c) Which of the Nash Equilibria is/are also subgame perfect equilibrium/equilibria?