Matematické metody v ekonomii
Week 8
Lecture 8 (April 10)
Contents
We solved for pure and mixed strategies equilibria in the battle of sexes and matching pennies games. We started sequential move games and considered the backward induction as one of solution concepts. Using it in the entrant - incumbent game with perfect information we found the subgame perfect Nash equilibrium, then, having extended the game to account for imperfect information, we found the perfect Bayesian equilibirum.