Tracy and Amy are playing a game in which Tracy has the first move at X in the decision tree shown below. Once Tracy has chosen either the top or bottom branch at X, Amy, who can see what Tracy has chosen, must choose the top or bottom branch at Y or Z. Both players know the payoffs at the end of each branch.
In the equilibrium of this game:
A. Tracy gets 300 and Amy gets 200.
B. Tracy gets 25 and Amy gets 225.
C. Tracy gets 75 and Amy gets 150.
D. Tracy and Amy both get 125.
Answer: C
Economics
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