Consider the following 3x2 game (depicted in Figure 1). There are two players denoted A and B. Player A can take the action of either U, M, or D. Player B can take the action of either L or R. Thus, there are six outcomes possible. The payoffs are presented in Figure 1. 1. If X = 4 is there a pure strategy Nash equilibrium? 2. If X = 2 find all Nash equilibrium. 3. With X = 2, suppose A moves first. B sees A's choice before making the L/R decision. What are the Subgame Perfect Nash Equilibrium?
