The Difference Between a Nash Equilibrium and a Subgame-Perfect Equilibrium

question 13

Multiple Choice

The difference between a Nash equilibrium and a subgame-perfect equilibrium is:

• A)the former requires rational play both on and off the equilibrium path but the latter requires rational play only on the equilibrium path.
• B)the former requires rational play only on the equilibrium path but the latter requires rational play both on and off the equilibrium path.
• C)Nash equilibria are a subset of the subgame-perfect equilibria.
• D)nothing;they are synonyms.

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Definitions:

Sample Proportion

A statistical measure that represents the proportion of success or a particular attribute in a sample.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, giving an estimate of the uncertainty around the main measurement.

Population Proportions

Ratios or fractions that represent parts of a whole for specified groups within a population.

Sample Counts

The actual observed frequencies or totals of occurrences or items in sampled categories or groups.