Definitions

Question 1

Axioms for normal form games

Answer 1

Treena, Ignored, Alice

Transitve
Incomplete
Asymmetric

Question 2

What is sequentially rationality?

Answer 2

In games which are dynamic with perfect information, we can invoke the idea of sequential rationality to find the solution which is most credible. Sequential rationality implies that the players play best responses in sequence. We use backward induction to find the solution.

Question 3

What is SPNE

Answer 3

In games which are dynamic and have imperfect information, we cannot use the idea of sequential rationality because in some subgames the players will move simultaneously.

Then we need to look for the Subgame Perfect Nash Equilibrium, by effectively looking for the players playing mutual best responses in all subgames. We do that by using backwards induction.