D.8 Subgame equilibrium | Game Theory – Microeconomics

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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.

Related videos:
-Repeated games:
-Nash equilibrium:

Related articles:
-Nash equilibrium:
-Game theory:

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15 Comments
  1. Ulrich Berger 2 weeks ago

    That's spectacularly wrong, please delete this video!

    Reply
  2. silent robi 2 weeks ago

    wrong explanation

    Reply
  3. Emily Kaisa 2 weeks ago

    how to do a 3×3? game

    Reply
  4. Joshua 2 weeks ago

    stnankk

    Reply
  5. David Heaton 2 weeks ago

    wrong

    Reply
  6. Baraa Shammout 2 weeks ago

    thank you very much. It was helpful

    Reply
  7. Serina Cat 2 weeks ago

    good

    Reply
  8. Friya Ivy 2 weeks ago

    7 subgames correction

    Reply
  9. Kaustav Kashyap 2 weeks ago

    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.

    Reply
  10. PRACHI GUPTA 2 weeks ago

    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) ?

    Reply
  11. Master MemeLord 2 weeks ago

    This was amazing.

    Reply
  12. Sam H 2 weeks ago

    It finally clicked for me. Thank you, that was well organized and precise.

    Reply
  13. Mashor Housh 2 weeks ago

    Hi
    according to the solution you show that the sub-game 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

    Reply
  14. Diptanil Sengupta 2 weeks ago

    + 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.

    Reply
  15. KL0NT 2 weeks ago

    very interesting! enjoyed it

    Reply

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