Dynamic games Flashcards
(6 cards)
1
Q
Zermello’s theorem
A
2
Q
Definition: subgame
A
- In summary: it begins with a singleton and cotains all the decision nodes that follow this singleton.
- It doen’t break any information set
3
Q
Definition: SPNE
A
4
Q
Beliefs definition
A
5
Q
Def sequentially rational
A
Remember that strategy profile is a vector containing the strategies used by each player.
- A strategy profile is sequentially rational if no player finds it worthwhile, once her information sets has been reached, to revise her strategy, given the beliefs about what has already occurred and her rival strategies.
- wPBNE requires consistency in very much the same way as the NE
- Take note at sequencial rationality at some information set
6
Q
wPBNE
A
