How do you find the Subgame perfect equilibrium?

Finding subgame-perfect equilibria The subgame-perfect Nash equilibrium is normally deduced by “backward induction” from the various ultimate outcomes of the game, eliminating branches which would involve any player making a move that is not credible (because it is not optimal) from that node.

How do you find the symmetric Nash equilibrium?

Algorithm to compute symmetric Nash equilibria (̂σ, ̂σ) • Pick a support σ. Set all the payoff PRσ(i) equal for i ∈ S(σ) and try to solve for σ. Check that for j /∈ S(σ) the payoff PRσ(j) is smaller than the payoff for i ∈ S(σ). Pick another support for ̂σ and repeat.

What if there are 2 Nash equilibrium?

If there are multiple Nash equilibria, then there is some hope that only one of them is admissible. In this case, it is hoped that the rational players are intelligent enough to figure out that any nonadmissible equilibria should be discarded.

What is the subgame perfect Nash equilibrium quizlet?

A Nash equilibrium of an extensive form game is a subgame perfect equilibrium if it induces Nash equilibrium play in every subgame. Nash equilibria that do not involve any incredible threats or promises in any part of any player’s strategy are called subgame perfect.

What is a symmetric Nash?

A symmetric Nash equilibrium (SNE) is a NE in which all players play the same strategy. Nash [15], while providing game theory with its central solution concept, also defined the notion of a symmetric game and proved, in a separate theorem, that such games always admit a symmetric equilibrium.

What is the difference between Subgame perfect equilibrium and Nash equilibrium?

The key difference between subgame perfect equilibrium and Nash equilibrium is that subgame perfect equilibrium require that all threats are credible. Consequently, the study of subgame perfect equilibrium is the study of credible threats. But a Nash equilibrium may or may not be a subgame perfect equilibrium.

What is meant by a Subgame perfect Nash equilibrium what will be the Subgame perfect Nash equilibria for the following game?

In game theory, a subgame perfect equilibrium (or subgame perfect Nash equilibrium) is a refinement of a Nash equilibrium used in dynamic games. Here one first considers the last actions of the game and determines which actions the final mover should take in each possible circumstance to maximize his/her utility.