Machine learningGame-theoretic

Subgame Perfect Equilibrium

Subgame Perfect Equilibrium (SPE) is a refinement of Nash Equilibrium for sequential games, introduced by Reinhard Selten in 1965. It requires that strategy profiles constitute a Nash Equilibrium in every subgame, eliminating non-credible threats and incredible promises. Backward induction is the primary computational method for finding SPE in finite games.

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Sources

  1. Selten, R. (1965). Spieltheoretische Behandlung eines Oligopolmodells mit Nachfrageträgheit. Zeitschrift für die gesamte Staatswissenschaft, 121, 301-324. link
  2. von Stackelberg, H. (1934). Marktform und Gleichgewicht. Julius Springer. link

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Referenced by

ScholarGateSubgame Perfect Equilibrium (Subgame Perfect Equilibrium (SPE) with Backward Induction). Retrieved 2026-06-04 from https://scholargate.app/en/game-theory/subgame-perfect-equilibrium