Using the following sequential-move production game, determine whether player B has a first-mover advantage and identify the strategy that leads to that advantage:
A)Player B has a first-mover advantage.The strategy leading to an advantage is {(low output), (if low output, high output), (if high output, high output).
B)Player B has a first-mover advantage.The strategy leading to an advantage is {(low output), (if low output, high output), (if high output, low output).
C)Player B has a first-mover advantage.The strategy leading to an advantage is {(high output), (if low output, high output), (if high output, low output).
D)Player B does not have a first-mover advantage in the above game.

Question

Using the following sequential-move production game, determine whether player B has a first-mover advantage and identify the strategy that leads to that advantage: 
A)Player B has a first-mover advantage.The strategy leading to an advantage is {(low output), (if low output, high output), (if high output, high output). 
B)Player B has a first-mover advantage.The strategy leading to an advantage is {(low output), (if low output, high output), (if high output, low output). 
C)Player B has a first-mover advantage.The strategy leading to an advantage is {(high output), (if low output, high output), (if high output, low output). 
D)Player B does not have a first-mover advantage in the above game.

Quizplus · Accepted Answer

Player B has a first-mover advantage in this game. If player A chooses "low output," player B should also choose "low output" to avoid the penalty. If player A chooses "high output," player B should choose "high output" to obtain the highest possible payoff. Therefore, the best strategy for player B is {(high output), (if low output, high output), (if high output, low output)}.

Using the Following Sequential-Move Production Game, Determine Whether Player B