3.2 Sub-Game Perfect Equilibria » Quiz Solution
Lesson 3 : What is the player 1's (P1) subgame perfect equilibrium strategy in the game above?
(a) A
(b) B
(c) C
(d) D
First, figure out what player 2 would play for each of player 1's possible actions. Then, pick the strategy for player 1 that gives the highest payout conditional on player 2 best responding to whatever player 1 chooses.