Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
A strategy profile that is optimal for every subgame of the original game
B
A strategy that only considers the final outcome of the game
C
A strategy that is optimal only in the first stage of the game
D
A strategy that disregards future consequences
Understanding the Answer
Let's break down why this is correct
Answer
A subgame perfect equilibrium is a concept in game theory that describes a situation where players make the best possible decisions at every point in the game, not just at the beginning. This means that even if the game changes or a player has to make a decision later on, they will still choose the best strategy based on what has happened so far. For example, imagine two players in a game where they take turns to choose actions. If at any turn, a player can choose a strategy that will lead to the best outcome for them, even considering future moves, then they are following a subgame perfect equilibrium. This concept helps ensure that players are acting rationally throughout the entire game, making it a key idea in understanding strategic interactions.
Detailed Explanation
A subgame perfect equilibrium means that the strategy works well in every part of the game. Other options are incorrect because This answer suggests that a strategy only looks at the final result; This option says a strategy is only good at the start.
Key Concepts
subgame perfection
Topic
Game Theory Strategies
Difficulty
easy level question
Cognitive Level
understand
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