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So in the second stage, if they both quit in the second stage
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then their payoffs are going to be, for A, -C,
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the costs they accumulated in the first stage,
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plus 0.
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And, for B, -C + 0.
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If A quits and B fights in the second stage
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then the payoffs are -C + 0 and -C + V.
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If A fights and B quits
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then the payoffs are -C + V and -C + 0.
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And if they both fight for two periods,
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we have a decision to make
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about how we're going to end the game in this two period game,