Consider the game in extensive form above In the backward in

Consider the game in extensive form above. In the backward induction solution to this game Player 1 plays strategy__ and Player 2 plays strategy__ (Please, label Player 1\'s strategies by A, B, and C, and Player 2\'s strategies as df, dg, ef, and so forth)

please provide explanatiom

Solution

In. An above gane if we choose backward induction then out of 3 strategies for player 1 (A,B,C) and gor player 2 (df,dg,ef,eg)

We see that Player 2 has best payoff when player 1 after playing B is (4,6) hence payoff for player 2 is 6 and payoff for player 1 is 4

Now payoff for player 1 is less than that of he would have achieved if player 1 choose to play A . Best payoff us possible when player 1 plays A and then player 2 plays D as payoff from D is higher than payoff from E

Strategy C is dominated by Strategy A in player 1 case.

Player 1 has strategy A and player 2 has strategy as df and dg