I am trying to find the strategies and the subgame perfect nash equilibria of the following dynamic 3 player game:
While I think I managed to find the strategies (see below), I am struggling to find the subgame perfect nash equilibria.
a) Determine all strategies of players 1,2,3.
b) Determine the subgame perfect equilibria/equilibrium of the game.
For a) I found the following strategies: Player 1 can play strategy A or B, player 2 can play CE, CF, DE, DF, player 3 can play GI, GJ, HI, HJ. Would that be correct?
Unfortunately, I don’t even know how to tackle problem b). I know that I should probably use backward induction, but I don’t know how exactly it would be applied here. I would greatly appreciate someone verifying my first answer and guiding me through problem b).