Question 1: (10 points)
Consider the following game, where player A has strategies Up and Down, while player B has strategies
Left and Right.
a) Solve for the Nash equilibrium(s) of this game, and circle the payoff. Do players A or B
have a dominant strategy?
b) Write out the sequential form of this game, assuming player A moves first. Solve for the
subgame perfect equilibrium outcome, and circle the payoff.
c) Now, write out the sequential form of this game, assuming player B moves first. Solve for
the subgame perfect equilibrium outcome, and circle the payoff.
