# Nash equilibrium and subgame perfection: The case of observable queues

##
Moshe Haviv

### University of Sydney and Hebrew University

### Résumé:

Nash equilibrium and its subgame perfection
refinement are considered for the following games:
Each of an infinite number of identical players selects a single action
using his private information on the system's state;
any symmetric strategy results in a discrete Markov chain
among such states;
the player's payoff is a function of the state, action, and
common strategy selected by the other players.
The distinction between equilibria which are subgame perfect
and those which are not, is made apparent
due to the possibility that some states may be transient.
We illustrate the concept via queueing models in which the number of
customers in the system constitutes the state space of
a controlled Markov process.