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Hybrid Procedures

Author

Listed:
  • Yukio KORIYAMA

    (Ecole Polytechnique, Department of Economics)

  • Matias Nunez

    (Université de Cergy-Pontoise, THEMA)

Abstract

We consider hybrid procedures: a first step of reducing the game by iterated elimination of weakly dominated strategies (IEWDS) followed by a second step of applying an equilibrium refinement. We show that the set of perfect/proper outcomes of a reduced normal-form game might be larger than the set of the perfect/proper outcomes of the whole game by applying IEWDS. Even in dominance solvable games in which all the orders of IEWDS select a unique singleton in the game, the surviving outcome need not be a proper equilibrium of the whole game. However, in dominance solvable games that satisfy the transference of decision maker indifference condition (TDI of Marx and Swinkels, 1997), the surviving outcome coincides with the unique stable one and hence is proper.

Suggested Citation

  • Yukio KORIYAMA & Matias Nunez, 2014. "Hybrid Procedures," THEMA Working Papers 2014-02, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    • Handle: RePEc:ema:worpap:2014-02
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    References listed on IDEAS

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    More about this item

    Keywords

    Weak dominance; Iterated elimination; Proper equilibrium.;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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