Question

Consider a 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 30 to Wally and 20 to Elizabeth. If Wally chose L and Elizabeth F, the payoffs are 40 to Wally and 10 and to Elizabeth. If Wally decides to opt for H and Elizabeth A, the payoffs are 10 and 2 to Wally and Elizabeth, respectively. Finally, if Wally opts for H and Elizabeth F, the payoffs are 35 to Wally and 5 to Elizabeth. What is the outcome in the subgame perfect equilibrium of this game? Group of answer choices (H, F) (L, F) (H, A) (L, A) and (H, F) (H, F) and (L, F)

Answer 1