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extensive Form Reasoning in Normal Form Games

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Author Info

  • Mailath, G.J.
  • Samuelson, L.
  • Swinkels, J.

Abstract

There is a tension between a belief in the strategic relevance of information sets and subgames and a belief in the sufficiency of the reduced normal form. The authors identify a prope rty of extensive form information sets and subgames termed strategic independence. Strategic independence is captured by the reduced norm al form and can be used to define normal form information sets and subgames. The authors prove a close relationship between these norma l form structures and their extensive form namesakes. They then motiva te and implement solution concepts corresponding to subgame perfection, sequential equilibrium, and forward induction entirely in the reduce d normal form. Copyright 1993 by The Econometric Society.

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Bibliographic Info

Paper provided by Tilburg - Center for Economic Research in its series Papers with number 9130.

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Length: 31 pages
Date of creation: 1991
Date of revision:
Handle: RePEc:fth:tilbur:9130

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Postal: TILBURG UNIVERSITY, CENTER FOR ECONOMIC RESEARCH, 5000 LE TILBURG THE NETHERLANDS.
Phone: 31 13 4663050
Fax: 31 13 4663066
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Web page: http://center.uvt.nl/
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Keywords: game theory ; economic models;

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