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Subgame Perfect Equilibrium

In: Game Theory

Author

Listed:
  • Ana Espinola-Arredondo

    (Washington State University)

  • Felix Muñoz-Garcia

    (Washington State University)

Abstract

In this chapter, we switch our attention to sequential-move games. While we can still use the NE solution concept to predict equilibrium behavior in these games, we show that this solution concept would yield several equilibrium outcomes, thus not being very precise. More importantly, several NEs in this type of game are based on beliefs that cannot be credible in a dynamic setting.

Suggested Citation

  • Ana Espinola-Arredondo & Felix Muñoz-Garcia, 2023. "Subgame Perfect Equilibrium," Springer Books, in: Game Theory, chapter 0, pages 151-202, Springer.
  • Handle: RePEc:spr:sprchp:978-3-031-37574-3_6
    DOI: 10.1007/978-3-031-37574-3_6
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