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In a Subgame Perfect Equilibrium

Question 98
Multiple Choice

In a subgame perfect equilibrium, A) the first mover has an advantage over other players. B) the last mover has an advantage over other players. C) each player's strategy constitutes a Nash equilibrium at every subgame of the original game. D) each player has the same response as the others at every subgame of the tree.

Related questions
Q 99
Refer to Figure 14-2.If the government delays Gigacom's entry and Xenophone moves first,is a threat by Gigacom that it will provide DSL service if Gigacom provides cable service a credible threat? A) No, because Gigacom will lose $4.5 million in profits if it carries out its threat. B) Yes, because Gigacom's DSL service will drive Xenophone out of business. C) No, because as a second mover, it has no choice but to abide by the choices of the first mover. D) Yes, Xenophone stands to lose $3 million in profit.
Q 100
Refer to Figure 14-2.If the government delays Gigacom's entry and Xenophone moves first,what is the likely outcome in the market? A) Both offer internet service via cable line; Xenophone earns a profit of $6 million and Gigacom earns a profit of $9 million. B) Both offer DSL internet service; Xenophone earns a profit of $8 million and Gigacom earns a profit of $7 million. C) Xenophone offers DSL internet service and earns a profit of $5 million while Gigacom offer internet service via cable line and earns a profit of $6.5 million. D) Xenophone offers internet service via cable line and earns a profit of $4 million while Gigacom offers DSL internet service and earns a profit of $4.5 million.
Q 101
Refer to Figure 14-2.Now suppose that the government delays Xenophone's entry and Gigacom moves first,what is the likely outcome in the market? A) Both offer internet service via cable line; Xenophone earns a profit of $6 million and Gigacom earns a profit of $9 million. B) Both offer DSL internet service; Xenophone earns a profit of $8 million and Gigacom earns a profit of $7 million. C) Xenophone offers DSL internet service and earns a profit of $5 million while Gigacom offer internet service via cable line and earns a profit of $6.5 million. D) Xenophone offers internet service via cable line and earns a profit of $4 million while Gigacom offers DSL internet service and earns a profit of $4.5 million.
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