Is there any nash equilibrium that is not subgame-perfect

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Reference no: EM13896568

Suppose that Player 1 first plays Top, Middle or Bottom. Player 2 only finds out whether player 1 has played Bottom. If so, he plays Left or Right; if not, he plays In or Out. The payoffs are: (1,1) after (Top, In), (0,0) after (Top, Out), (0,0) after (Middle, In), (1,1) after (Middle, Out), (0.6,0.6) after (Bottom, Left), (0,0) after (Bottom, Right). Draw the game tree, identify the subgame(s), find the subgame perfect equilibria in pure strategy. Is there any Nash equilibrium that is not subgame-perfect?

Reference no: EM13896568

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