Find the Subgame Perfect equilibrium strategies.
Solution:
Stage 1 : player 2 chooses F after C. And player 2 chooses E after A.
Stage 2: player 1 chooses C.
Then SPNE={ (C), (E after A, F after C)}.
Transform this game into a Strategic Form Game and draw the game table
{BD, BE, BF, BG} is Nash equilibrium.
ım this question I am stuck at drawin normal form game table. Please help me to do that.
Best Answer
Just answered a similar question. The strategies of Player 1 are indeed A,B,C. The strategies of Player 2 however are DF,DG,EF,EG.
It is not clear how you filled the table. The (A,F) cell is meaningless: player 1 plays A, and player 2 chooses an action he can't choose.