Imperfect Information: Information Sets and Sub-game Perfection in Game Theory - Lecture 18

Explore games with both simultaneous and sequential components in this lecture on game theory. Delve into the concept of information sets to represent player uncertainty within a game, enabling the definition of imperfect information games and formal subgames. Learn how to extend strategy definitions to imperfect information games and construct their normal form. Understand the crucial role of information over time in game analysis. Discover why not all Nash equilibria are equally plausible in these games, and introduce the refined concept of subgame perfection to address inconsistencies with backward induction and non-Nash behavior in unreached subgames. Cover topics including translating games between matrix and tree forms, finding Nash equilibria, and identifying subgame perfect equilibria.