A Question per day - Day 15

1. Two players must choose one of three possible strategies: A, B or C. This is a sequential game with complete information, where player 1 moves before player 2. The game tree associated with this game is as follows (where the payoffs for each player are the utility derived from each outcome).

a. Assuming that this is a noncooperative game and that higher utility is better than lower utility, what will be the outcome of this game? Explain.