A subgame-perfect equilibrium:
A) Is the solution to an extensive form game.
B) Can be found using the method of backward induction.
C) Is a Nash equilibrium for a sequential-move game.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

A subgame-perfect equilibrium is indeed the solution to an extensive form game, can be found using backward induction, and is a Nash equilibrium for every subgame of the game, making all of the given options correct.

A Subgame-Perfect Equilibrium