Consider the Following Sequential Game

question 8

Multiple Choice

Consider the following sequential game.Wally first chooses L or H.Having observed Wally's choice, Elizabeth chooses between A and F.The payoffs are as follows.If Wally chose L and Elizabeth chose A, the payoffs are 20 to Wally and 30 to Elizabeth.If Wally chose L and Elizabeth F, the payoffs are 25 to Wally and 40 and to Elizabeth.If Wally decides to opt for H and Elizabeth A, the payoffs are 30 and 20 to Wally and Elizabeth, respectively.Finally, if Wally opts for H and Elizabeth F, the payoffs are 20 to Wally and 50 to Elizabeth.What is the outcome in the subgame perfect equilibrium of this game?

• A)(H, A)
• B)(L, F)
• C)(H, F)
• D)(L, A)
• E)(L, F) and (H, A)

---

Definitions:

Heart Disease

A range of conditions affecting the heart, including coronary artery disease, heart rhythm problems, and heart defects.

Risk Factor

Anything that increases the likelihood of developing a disease or injury.

Depression

A common mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Defence Mechanism

A psychological strategy used unconsciously by individuals to protect themselves from anxiety or social sanctions and to manage emotional conflicts.