[Math] Difference between SPE and SPNE in Game Theory

definitiongame theorynash-equilibrium

I am slightly confused as to what the difference between Subgame Perfect Equilibrium and Subgame Perfect Nash Equilibrium is.

I was told there is a difference, but now I found many lecture notes that use the terms as substitutes.

Thank you!

Best Answer

The two terms, SPE and SPNE, refer to exactly the same equilibrium concept in game theory, i.e. a strategy profile that induces a NE in every subgame.

On Wikipedia:

In game theory, a subgame perfect equilibrium (or subgame perfect Nash equilibrium) is a refinement of a Nash equilibrium used in dynamic games. A strategy profile is a subgame perfect equilibrium if it represents a Nash equilibrium of every subgame of the original game.