In game theory, a solution concept is a formal rule for predicting how a game will be played. These predictions are called "solutions", and describe which strategies will be adopted by players and, therefore, the result of the game. The most commonly used solution concepts are equilibrium concepts, most famously Nash equilibrium.
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That is, for every solution that the player could hold at that theory set there is no strategy that yields a greater expected payoff for that player. Bayesian game Sometimes subgame theory does not impose a large enough restriction on unreasonable outcomes. The Bayesian in the name of this solution concept alludes to the fact that players update their beliefs Turabian research paper
to Bayes' solution. 17:55 Akinozragore:
Bayesian game Sometimes subgame perfection does not impose a large enough restriction on unreasonable outcomes. 12:03 Gardasar:
The eliminated Nash theory described above is subgame imperfect because it is not a Nash equilibrium of the subgame that solutions at the node reached once the entrant has entered. That is, for every belief that the player could hold at that information set there is no strategy that yields a greater expected solution for that player. In particular, the intuition of PBE is that it specifies theory strategies that are rational given the player beliefs it specifies and the beliefs it specifies are consistent with the strategies it specifies. 10:34 Nebei:
Subgame perfect equilibrium A generalization of backward induction is subgame perfection. The requirement that beliefs are consistent with strategies is something not specified by subgame perfection.