11. How to Solve for Perfect Bayesian Equilibrium: Example 1 (Game Theory Playlist 10)
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11. How to Solve for Perfect Bayesian Equilibrium: Example 1 (Game Theory Playlist 10)
In this episode we apply Requirements 1-4 that we learned in episodes 5-10 to solve for perfect Bayesian equilibrium. The game we use here is simple in the sense that it is not a game of incomplete information. It is in fact an extensive game with complete but imperfect information. This example demonstrates that we can apply PBE idea to any ...
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