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This video shows how to look for a subgame perfect equilibrium. We start by explaining what subgames are, then look for a Nash equilibrium, and finally look for the subgame equilibrium.
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That's spectacularly wrong, please delete this video!
wrong explanation
how to do a 3×3? game
stnankk
wrong
thank you very much. It was helpful
good
7 subgames correction
The normal form representation of the game is absolutely wrong. Player 2 must have 4 strategies. L & R are only the actions of player 2, his strategies are LL, LR, RL & RR.
why will player 1 choose (3,1)? I didn't understand as up is the dominant strategy for him then why will he choose down ? and why not (5,2) ?
This was amazing.
It finally clicked for me. Thank you, that was well organized and precise.
Hi
according to the solution you show that the subgame perfect is not Nash equilibrium
D, R in the table. But according to my understand subgame perfect MUST be nash for the initial game
I think your table should have been built with 4 columns LL LR RL RR then you could see that 3,1 is a nash equilibrium
for the game and it is also subgame perfect.
the solution should be
D, LR which means down for player 1 and Left if player 1 choose Up and Right if he choose Down
+ Policonomics, I have a quick question. If the problem can be solved by a 2 X 2 table, then why do we need use to go for a decision tree ? We could have drawn a 2 X 2 table and calculate nash equlibria and solved it.
very interesting! enjoyed it