Is the set of SPE of any extensive form game with perfect information is identical to the set of Nash Equilibria of the induced normal form game? If yes, provide a proof. If no, provide an explanation by illustrating a game.

Is the set of SPE of any extensive form game with perfect information is identical to the set of Nash Equilibria of the induced normal form game? If yes, provide a proof. If no, provide an explanation by illustrating a game.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter15: Strategic Games

Section: Chapter Questions

Problem 6MC

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Question

Is the set of SPE of any extensive form game with perfect information is identical to the set of Nash Equilibria of the induced normal form game?

If yes, provide a proof.

If no, provide an explanation by illustrating a game.

[Maximum word limit for this question is 80 words.]

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