Lecture 19 - Subgame Perfect Equilibrium: Matchmaking and Strategic Investments

Yale Open Courses ECON 159: Game Theory by William Sheppard

Jun 8, 201801:17:08Education

We analyze three games using our new solution concept, subgame perfect equilibrium (SPE). The first game involves players’ trusting that others will not make mistakes. It has three Nash equilibria but only one is consist...

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