In a sequential game:
A)A player always obtains a higher payoff by maintaining the maximum flexibility in his or her actions.
B)The first mover always obtains a higher payoff than a second mover.
C)A player can sometimes obtain a higher payoff by making a move that restricts the flexibility he or she will have later in the game.
D)strategic moves include those that are easy to reverse.

Question

Quizplus · Accepted Answer

In a sequential game, there are cases where a player can obtain a higher payoff by making a move that restricts their flexibility later in the game. This is because by committing to a certain course of action, the player may be able to influence the other player's choices and achieve a better outcome overall. Therefore, choice C is the best answer. The other choices are not necessarily true in all cases, as some players may benefit from being second movers or from maintaining flexibility in their actions. Sometimes, making a commitment or restricting flexibility can be beneficial in a sequential game. For example, a player may choose to invest heavily in a certain market, thus reducing their flexibility, but potentially achieving a higher payoff if that market performs well. This is known as a strategic commitment. Therefore, option C is correct. The other options are incorrect as they make broad statements that do not always hold true in all sequential games.

In a Sequential Game