The maximum Stacy Dickert-Conlin is willing to pay for a high quality job is $35,000 and the maximum she is willing to pay for a low quality job is…
The maximum Stacy Dickert-Conlin is willing to pay for a high quality job is $35,000 and the maximum she is willing to pay for a low quality job is $29,000. It costs Lafollete $18,000 to do a high quality job and $17,000 to do a low quality job. A) Depict the extensive form of the game described above (i.e., the game tree). B) What is the Subgame Perfect Equilibrium of the game?
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