Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch. In the equilibrium of this game, Lee chooses ________, and then Cody chooses ________.
A)aggression; aggression
B)aggression; cooperation
C)cooperation; aggression
D)cooperation; cooperation

Question

Lee and Cody are playing a game in which Lee has the first move at A in the decision tree shown below. Once Lee has chosen either aggression or cooperation, Cody, who can see what Lee has chosen, must choose either aggression or cooperation at B or C. Both players know the payoffs at the end of each branch.  In the equilibrium of this game, Lee chooses ________, and then Cody chooses ________.
A)aggression; aggression 
B)aggression; cooperation 
C)cooperation; aggression 
D)cooperation; cooperation

Quizplus · Accepted Answer

Lee knows that if he chooses aggression, then Cody will choose cooperation, and if he chooses cooperation, then Cody will choose aggression. So Lee will choose aggression, and Cody will respond by choosing cooperation.

Lee and Cody Are Playing a Game in Which Lee