Suppose the production game depicted in the above payoff matrix is a sequential-move game.Identify the strategy leading to a first-mover advantage for player 2.
A)Player 2 moves first and plays Low Q.Observing player 2's move player 1's best response is to play Low Q.
B)Player 2 moves first and plays High Q.Observing player 2's move player 1's best response is to play Low Q.
C)Player 1 moves first and plays Low Q.Observing player 1's move player 2's best response is to play High Q.
D)Player 2 moves first and plays High Q.Observing player 2's move player 1's best response is to play High Q.

Question

Quizplus · Accepted Answer

In a sequential-move game, the player who moves first can potentially gain an advantage by making a move that induces a certain response from the other player. In this case, if player 2 moves first and plays High Q, player 1's best response is to play Low Q, resulting in a payoff of 4 for player 2 and 5 for player 1. If player 2 moves first and plays Low Q, player 1's best response is also to play Low Q, resulting in a payoff of 3 for player 2 and 6 for player 1. Therefore, playing High Q as the first mover seems to be the dominant strategy for player 2, leading to a potential advantage.

Suppose the Production Game Depicted in the Above Payoff Matrix