Refer to the following payoff matrix:

Suppose the simultaneous-move game depicted in the payoff matrix could be turned into a sequential-move game with player 1 moving first. In this case, the equilibrium payoffs will be:
A) ($20, $1).
B) ($50, $5).
C) ($40, $2).
D) ($15, $30).

Question

Refer to the following payoff matrix:

Suppose the simultaneous-move game depicted in the payoff matrix could be turned into a sequential-move game with player 1 moving first. In this case, the equilibrium payoffs will be:
A) ($20, $1). 
B) ($50, $5). 
C) ($40, $2). 
D) ($15, $30).

Quizplus · Accepted Answer

If player 1 moves first, they will choose option A to receive $40 (Player 2's payoff is $2). If player 2 moves after, they will choose option X to receive $2 (Player 1's payoff is $0). Therefore, the equilibrium payoffs will be ($40, $2).

Refer to the Following Payoff Matrix