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Observable implications of Nash and subgame-perfect behavior in extensive games

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  • Ray, Indrajit
  • Snyder, Susan

Abstract

We provide necessary and sufficient conditions for observed outcomes in extensive game forms, in which preferences are unobserved, to be rationalized first, weakly, as a Nash equilibrium and then as the unique subgame-perfect equilibrium. Thus, one could use these conditions to find that play is (a) consistent with subgame-perfect equilibrium, or (b) not consistent with subgame-perfect behavior but is consistent with Nash equilibrium, or (c) consistent with neither.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Mathematical Economics.

Volume (Year): 49 (2013)
Issue (Month): 6 ()
Pages: 471-477

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Handle: RePEc:eee:mateco:v:49:y:2013:i:6:p:471-477

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Web page: http://www.elsevier.com/locate/jmateco

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Keywords: Revealed preference; Consistency; Subgame-perfect equilibrium;

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  1. Gil Kalai & Ariel Rubinstein & Ran Spiegler, 2002. "Rationalizing Choice Functions By Multiple Rationales," Econometrica, Econometric Society, vol. 70(6), pages 2481-2488, November.
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Cited by:
  1. Pierre-André Chiappori & Olivier Donni, 2006. "Learning from a Piece of Pie: the Empirical Content of Nash Bargaining," Cahiers de recherche 0619, CIRPEE.
  2. Walter Bossert & Yves Sprumont, 2013. "Every Choice Function Is Backwards‐Induction Rationalizable," Econometrica, Econometric Society, vol. 81(6), pages 2521-2534, November.
  3. Lee, SangMok, 2012. "The testable implications of zero-sum games," Journal of Mathematical Economics, Elsevier, vol. 48(1), pages 39-46.

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