Complexity Explorer Santa Few Institute

Game Theory II • Dynamic Games

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4.1 The Centipede Game » Quiz Solution

 Lesson 4 : True or False. In the game below, it is a subgame perfect equilibrium to for player 1 to play "Stop" in the first round?


(a) True

(b)  False

Explanation: Unlike the centipede game in the video, player 2 would play "Continue" if they had the chance to act a second time. Knowing this, player 1  would not play stop in the first stage.