Player 1 and Player 2 Are Playing a Game in Which

question 38

Multiple Choice

Player 1 and Player 2 are playing a game in which Player 1 has the first move at A in the decision tree shown below. Once Player 1 has chosen either Up or Down, Player 2, who can see what Player 1 has chosen, must choose Up or Down at B or C. Both players know the payoffs at the end of each branch.  What is the equilibrium outcome of this game?

• A)Player 1 and Player 2 both choose Up.
• B)Player 1 and Player 2 both choose Down.
• C)Player 1 chooses Up and Player 2 chooses Down.
• D)Player 1 chooses Down and Player 2 chooses Up.

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Definitions:

Insert Function Box

A feature in spreadsheet software that helps users add pre-defined formulas into their worksheets.

Sum Menu

A functionality or option in software applications, especially spreadsheets, that totals selected numerical values.

Name Box Area

A feature in spreadsheet software like Microsoft Excel that displays the address of the selected cell or range of cells.

Arithmetic Operator

Symbols used in mathematics and programming to perform standard arithmetic operations such as addition, subtraction, multiplication, and division.