Tracy and Amy Are Playing a Game in Which Tracy

question 33

Multiple Choice

Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch. In the equilibrium this game, Tracy chooses the ________ branch, and then Amy chooses the ________ branch.

• A)top; top
• B)top; bottom
• C)bottom; top
• D)bottom; bottom