Topic 10/11

Question 1

A sub game is a collection of nodes and branches satisfying :

Answer 1

1. It’s starting point is a single decision node;
2. All nodes following this starting node are included in the sub game;
3. If one node X is the sub game, then all other nodes that are in x’s information set are included in the same sub game

Question 2

In a game of perfect information the sub game perfect equilibrium solution is the same as

Answer 2

The solution derived from backwards induction

Question 3

The number of Nash equilibria in a game may be the same as the number of SPNE?
True / false ?

Answer 3

TRUE

Question 4

SPNE requires that a Nash equilibrium is played in at least one sub game, but not necessarily all subgames?
True / false ?

Answer 4

FALSE

Question 5

SPNE does not apply to games with more than two players?

True / false ?

Answer 5

FALSE

Question 6

SPNE do not happen in games of perfect information ?

True / False

Answer 6

FALSE