Which of the following is true of a sequential game with perfect information?
A) To obtain a complete solution to a sequential game, there should be perfect information.
B) A sequential game with infinite moves can be solved backward to obtain a complete solution.
C) The equilibrium in a sequential game is always a second-best solution.
D) A sequential game does not have a stable equilibrium.
E) The outcome in a sequential game is inferior to the optimal outcome.

Question

Quizplus · Accepted Answer

In a sequential game with perfect information, all players know the sequence of moves and do not have any hidden or private information. This allows for a complete solution to be obtained, where all possible strategies and their corresponding payoffs can be determined. Therefore, option A is true. Option B is false as a sequential game with infinite moves may not converge to a solution. Option C is false as the equilibrium in a sequential game can be the best possible outcome. Option D is false as a sequential game may have a stable equilibrium. Option E is false as the outcome in a sequential game can be optimal or near-optimal depending on the strategies chosen.

Which of the Following Is True of a Sequential Game