-Consider game depicted in Figure 11.3 in which Left moves first. The payoffs for the subgame-perfect equilibrium for this game are:
A) (3, 2).
B) (1, 4).
C) (2, 3).
D) (2, 2).
E) (1, 5).

Question

-Consider game depicted in Figure 11.3 in which Left moves first. The payoffs for the subgame-perfect equilibrium for this game are:
A) (3, 2). 
B) (1, 4). 
C) (2, 3). 
D) (2, 2). 
E) (1, 5).

Quizplus · Accepted Answer

In a subgame-perfect equilibrium, players make the optimal choice at every point in the game, taking into account the future actions of other players. In this scenario, Left, moving first, will anticipate Right's responses and choose the path that leads to the highest payoff for themselves while considering Right's optimal responses. The payoff (3, 2) indicates the outcome where Left has made the optimal choice considering Right's best response, leading to the highest possible payoff for Left given the structure of the game.

-Consider Game Depicted in Figure 11