In a Subgame-Perfect Equilibrium

question 244

Multiple Choice

In a subgame-perfect equilibrium

• A)the first mover has an advantage over other players.
• B)the last mover has an advantage over other players.
• C)each player's strategy constitutes a Nash equilibrium at every subgame of the original game.
• D)each player has the same response as the others at every subgame of the tree.

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Definitions:

Mental Set

A cognitive bias that involves approaching a problem in a particular way, often a way that has been successful in the past.

Means-End Analysis

A problem-solving technique that involves breaking down the problem into smaller problems and achieving goals that direct an individual closer to the ultimate goal.

Noncompensatory Modeling

A decision-making approach where a shortfall in one attribute cannot be offset by a higher value in another attribute.

Artificial Intelligence

The programming of computer systems to simulate human thinking in solving problems and in making judgments and decisions.