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The One-Deviation Principle for Sequential Rationality

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Author Info
: Ebbe Hendon (Institute of Economics, University of Copenhagen)
Hans Jørgen Jacobsen (Institute of Economics, University of Copenhagen)
Birgitte Sloth (Institute of Economics, University of Copenhagen)

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Abstract

In this paper we present a decentralization result which is useful for practical and theoretical work with the concept of sequential equilibrium and related concepts of perfect Bayesian equilibrium. A weak consistency condition which is sufficient to obtain an analogy to the well-known One-Deviation Principle for subgame perfect equilibrium is given.

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Publisher Info
Paper provided by University of Copenhagen. Department of Economics in its series Discussion Papers with number 92-05.

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Length: 12 pages
Date of creation: Jul 1992
Date of revision:
Handle: RePEc:kud:kuiedp:9205

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