Asked by Geneva Brems on Jul 25, 2024
Verified
An equilibrium in a sequential game is always a Nash equilibrium in a simultaneous game with equivalent payoffs.
Sequential Game
A game theory concept where players make decisions one after another, with each player having knowledge of the previous players' decisions.
Nash Equilibrium
A situation in game theory where each player's chosen strategy maximizes their payoff, given the strategies chosen by other players.
Simultaneous Game
A game theory model where players make their moves at the same time without knowing the strategies chosen by other players.
- Get acquainted with the concept of Nash equilibrium within game theory.
Verified Answer
MW
Megan WillisJul 30, 2024
Final Answer :
False
Explanation :
In a sequential game, players make decisions one after another, allowing later players to react to the earlier players' actions, which can lead to different strategies and outcomes compared to a simultaneous game where all players make decisions without knowledge of the others' choices. Nash equilibrium assumes simultaneous decision-making, so an equilibrium in a sequential game is not always a Nash equilibrium in a simultaneous game.
Learning Objectives
- Get acquainted with the concept of Nash equilibrium within game theory.