Subgame Perfect Equilibrium - Wars of Attrition in Game Theory - Lecture 20
Explore the concept of wars of attrition in this 76-minute lecture from Yale University's Game Theory course. Delve into the analysis of games that mimic trench warfare, strikes, and competitive business scenarios. Discover why long and damaging fights can occur even when prizes are small compared to accumulated costs. Examine rational explanations for prolonged conflicts, analyzing both two-period and potentially infinite versions of the game. Investigate various equilibria, including those leading to quick resolutions and others resulting in extended battles. Learn how the probability of a fight decreases as its duration and cost increase. Gain insights through real-world examples, in-depth analysis, and discussions of subgame perfect equilibria. Conclude with a generalization of the wars of attrition concept, enhancing your understanding of game theory principles.