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Complete Sequential Equilibrium and Its Alternative

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  • Jung, Hanjoon Michael

Abstract

We propose a complete version of the sequential equilibrium (CSE) and its alternative solution concept (WCSE) for general finite-period games with observed actions. The sequential equilibrium (SE) is not a complete solution concept in that it might not be a Nash equilibrium in the general games that allow a continuum of types and strategies. The CSE is always a Nash equilibrium and is equivalent to the SE in finite games. So, the CSE is a complete solution concept in the general games as a version of the SE. The WCSE is a weak, but simple version of the CSE. It is also a complete solution concept and functions as an alternative solution concept to the CSE. Their relation with converted versions of the perfect equilibrium and the perfect Bayesian equilibrium are discussed

Suggested Citation

  • Jung, Hanjoon Michael, 2009. "Complete Sequential Equilibrium and Its Alternative," MPRA Paper 15443, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:15443
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    References listed on IDEAS

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    1. Fudenberg, Drew & Tirole, Jean, 1991. "Perfect Bayesian equilibrium and sequential equilibrium," Journal of Economic Theory, Elsevier, vol. 53(2), pages 236-260, April.
    2. Kreps, David M & Wilson, Robert, 1982. "Sequential Equilibria," Econometrica, Econometric Society, vol. 50(4), pages 863-894, July.
    3. Erik J. Balder, 1988. "Generalized Equilibrium Results for Games with Incomplete Information," Mathematics of Operations Research, INFORMS, vol. 13(2), pages 265-276, May.
    4. Crawford, Vincent P & Sobel, Joel, 1982. "Strategic Information Transmission," Econometrica, Econometric Society, vol. 50(6), pages 1431-1451, November.
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    Cited by:

    1. Hanjoon Michael Jung, 2020. "Perfect regular equilibrium," International Journal of Economic Theory, The International Society for Economic Theory, vol. 16(4), pages 380-398, December.
    2. Jung, Hanjoon Michael, 2009. "Strategic Information Transmission: Comment," MPRA Paper 17115, University Library of Munich, Germany.

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    More about this item

    Keywords

    Complete Belief; Complete Sequential Equilibirum; Finite-period game; Solution Concept; Sequential Convergency; Sequential Equilibrium.;
    All these keywords.

    JEL classification:

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

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