Question

Please show step by step and explanation: “All subgame perfect equilibria are Nash equilibria.” Is that...

Please show step by step and explanation:

“All subgame perfect equilibria are Nash equilibria.” Is that claim true or false? If it is true, explain why so. If it is false, prove this point by constructing a counterexample to the claim (i.e. a game in which there is a subgame perfect equilibrium which is not a Nash equilibrium).

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Answer #1

All subgame perfect equilibria are Nash equilibria because the entire game itself is a subgame.

A subgame perfect equilibria is considered to be a subset of the nash equilibria.

But all nash equilibra are not subgame perfect.

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