help with game theory

[Corporate Thug]

once you find the nash equilibrium, how do you figure if its a perfect subgame or not perfect subgame? what does perfect subgame mean?

thanx

 

[Corporate Thug]

where are all the econ folks at?

 

[luvya]

Allright allright :frown:

Perfect subgame simply means that during every stage of the game, each person does what the best response tells him.

 

[Corporate Thug]

Originally posted by: luvya
Allright allright :frown:

Perfect subgame simply means that during every stage of the game, each person does what the best response tells him.

how would you go about finding it in an extensive form game?

 

[luvya]

Go to the bottom of the graph. Look at the best response for each person in the last stage and act accordingly. Sorry, your question is not well defined, so I guess this is what you are asking.