2767 views

Lec 18 - Imperfect information: information sets and sub-game perfection

Game Theory (ECON 159) We consider games that have both simultaneous and sequential components, combining ideas from before and after the midterm. We represent what a player does not know within a game using an information set: a collection of nodes among which the player cannot distinguish. This lets us define games of imperfect information; and also lets us formally define subgames. We then extend our definition of a strategy to imperfect information games, and use this to construct the normal form (the payoff matrix) of such games. A key idea here is that it is information, not time per se, that matters. We show that not all Nash equilibria of such games are equally plausible: some are inconsistent with backward induction; some involve non-Nash behavior in some (unreached) subgames. To deal with this, we introduce a more refined equilibrium notion, called sub-game perfection. 00:00 - Chapter 1. Games of Imperfect Information: Information Sets 18:56 - Chapter 2. Games of Imperfect Information: Translating a Game from Matrix Form to Tree Form and Vice Versa 35:11 - Chapter 3. Games of Imperfect Information: Finding Nash Equilibria 49:59 - Chapter 4. Games of Imperfect Information: Sub-games 01:10:17 - Chapter 5. Games of Imperfect Information: Sub-game Perfect Equilibria Complete course materials are available at the Open Yale Courses website: http://open.yale.edu/courses This course was recorded in Fall 2007.

Video is embedded from external source so embedding is not available.

Video is embedded from external source so download is not available.

No content is added to this lecture.

Go to course:

This video is a part of a lecture series from of Yale