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How Proper is Sequential Equilibrium?

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  • George J. Mailath

Abstract

We show that a strategy profile of a normal form game is proper if and only if it is quasi-perfect in every extensive form (with that normal form). Thus, properness requires optimality along a sequence of supporting trembles, while sequentiality only requires optimality in the limit.

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Paper provided by Northwestern University, Center for Mathematical Studies in Economics and Management Science in its series Discussion Papers with number 1161.

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Date of creation: Jul 1996
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Handle: RePEc:nwu:cmsems:1161

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Web page: http://www.kellogg.northwestern.edu/research/math/
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  1. Blume, Lawrence & Brandenburger, Adam & Dekel, Eddie, 1991. "Lexicographic Probabilities and Choice under Uncertainty," Econometrica, Econometric Society, vol. 59(1), pages 61-79, January.
  2. R. Myerson, 2010. "Refinement of the Nash Equilibrium Concept," Levine's Working Paper Archive 537, David K. Levine.
  3. Blume, Lawrence & Brandenburger, Adam & Dekel, Eddie, 1991. "Lexicographic Probabilities and Equilibrium Refinements," Econometrica, Econometric Society, vol. 59(1), pages 81-98, January.
  4. George J. Mailath, 1993. "Normal Form Structures in Extensive Form Games," Discussion Papers 1041, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  5. Roger B. Myerson, 1984. "Multistage Games with Communication," Discussion Papers 590, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  6. Mailath, G.J. & Samuelson, L. & Swinkels, J., 1990. "Extensive Form Reasoning In Normal Form Games," Papers 1-90-1, Pennsylvania State - Department of Economics.
  7. KOHLBERG, Elon & MERTENS, Jean-François, . "On the strategic stability of equilibria," CORE Discussion Papers RP -716, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  8. Leslie McFarland-Marx & Jeroen M. Swinkels, 1993. "Order Independence for Iterated Weak Dominance," Discussion Papers 1040, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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Cited by:
  1. John Hillas, 1996. "On the Relation Between Perfect Equilibria in Extensive Form Games and Proper Equilibria in Normal Form Games," Game Theory and Information 9605002, EconWPA, revised 14 May 1996.
  2. Srihari Govindan & Robert Wilson, 2008. "On Forward Induction," Levine's Working Paper Archive 122247000000001859, David K. Levine.
  3. Antoni Calvó-Armengol & Rahmi Ilkiliç, 2005. "Pairwise-Stability and Nash Equilibria in Network Formation," Working Papers 2005.34, Fondazione Eni Enrico Mattei.
  4. Asheim, Geir B. & Perea, Andres, 2005. "Sequential and quasi-perfect rationalizability in extensive games," Games and Economic Behavior, Elsevier, vol. 53(1), pages 15-42, October.

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