Game Theory 10 – chap17. Sequential rationality in games of imperfect information
We explain how to define sequential rationality in dynamic Bayesian games and why traditional equilibria (SPE or NE) do not satisfy sequential rationality.
We explain how to define sequential rationality in dynamic Bayesian games and why traditional equilibria (SPE or NE) do not satisfy sequential rationality.
Learn about rationalizability, a second way to predict in normal-form games. Examine the difference between 2-player and 3-player games in terms of ISD and BR.
Of the three elements of a normal form game, we’ll look at strategy, and how to choose a strategy that maximizes the expected payoff under a given belief.