Simulation Game - SPNE - Game Theory

 This is a simulation game to illustrate the Sub Game Perfect Nash Equilibrium concept in game theory:

This is an interactive simulation game designed to illustrate the Subgame Perfect Nash Equilibrium (SPNE) concept and Backward Induction in Game Theory.

📖 What is the Centipede Game?

The Centipede Game is a famous extensive-form dynamic game in game theory first introduced by economist Robert Aumann in 1981. Two players take turns deciding whether to "Take" (end the game and secure the larger share of the current pot) or "Pass" (pass the turn to the other player, causing the total pot to grow).

Key Concepts Demonstrated:

• Subgame Perfect Nash Equilibrium (SPNE): A strategic equilibrium refinement where every player plays a Nash equilibrium in every subgame of the overall game.
• Backward Induction: The analytical process of solving dynamic games by starting at the final decision node and working backward to determine optimal choices at each stage.
• The Paradox of Backward Induction: Game theory dictates that rational players using backward induction will choose to Take on the very first move (resulting in the lowest overall payoff). However, experimental evidence shows human players frequently choose to Pass multiple times to build up higher collective rewards.

♟️ Centipede Game: SPNE & Backward Induction

Explore Sequential Dynamic Games, Subgames, and the Paradox of Backward Induction

$0

Player 1 Total

P1 Turn

Current State

$0

Player 2 Total

Node 1: Choose to Take (end game & take majority pot) or Pass (grow pot & pass turn).

🧠 Backward Induction Solver

Subgame Perfect Nash Equilibrium (SPNE) is found by solving the game backward from the terminal nodes.

Click the button above to trace subgames backward node-by-node.

Game History

Rnd	End Node	Action	Payoffs (P1, P2)

♟️ Centipede Game: SPNE & Backward Induction

Explore Sequential Dynamic Games, Subgames, and the Paradox of Backward Induction

$0

Player 1 Total

P1 Turn

Current State

$0

Player 2 Total

SELECT OPPONENT MODE:

Node 1: Choose to Take (end game & take majority pot) or Pass (grow pot & pass turn).

🧠 Backward Induction Solver

Subgame Perfect Nash Equilibrium (SPNE) is found by solving the game backward from the terminal nodes.

Click the button above to trace subgames backward node-by-node.

Game History

Rnd	End Node	Action	Payoffs (P1, P2)