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Existence of subgame perfect equilibrium with public randomization: A short proof

Author

Listed:
  • Arthur J. Robson

    (University of Western Ontario)

  • Philip J. Reny

    (University of Chicago)

Abstract

Consider a multi-stage game where each player has a compact choice set and payoffs are continuous in all such choices. Harris, Reny and Robson (1995) prove existence of a subgame perfect equilibrium as long as a public correlation device is added to each stage. They achieve this by showing that the subgame perfect equilibium path correspondence is upper hemicontinuous. The present paper gives a short proof of existence that focuses on equilibrium payoffs rather than paths.

Suggested Citation

  • Arthur J. Robson & Philip J. Reny, 2002. "Existence of subgame perfect equilibrium with public randomization: A short proof," Economics Bulletin, AccessEcon, vol. 3(24), pages 1-8.
    • Handle: RePEc:ebl:ecbull:eb-02c70016
    as

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    File URL: http://www.accessecon.com/pubs/EB/2002/Volume3/EB-02C70016A.pdf
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    References listed on IDEAS

    as
    1. Harris, Christopher & Reny, Philip & Robson, Arthur, 1995. "The Existence of Subgame-Perfect Equilibrium in Continuous Games with Almost Perfect Information: A Case for Public Randomization," Econometrica, Econometric Society, vol. 63(3), pages 507-544, May.
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    Cited by:

    1. He, Wei & Sun, Yeneng, 2015. "Dynamic Games with Almost Perfect Information," MPRA Paper 63345, University Library of Munich, Germany.
    2. Ivar Ekeland & Lazrak Ali, 2006. "Dynamic choices of hyperbolic consumers: the continuous time case," 2006 Meeting Papers 822, Society for Economic Dynamics.
    3. He, Wei & Sun, Yeneng, 2020. "Dynamic games with (almost) perfect information," Theoretical Economics, Econometric Society, vol. 15(2), May.
    4. Wei He & Yeneng Sun, 2015. "Dynamic Games with Almost Perfect Information," Papers 1503.08900, arXiv.org.

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    More about this item

    Keywords

    Existence;

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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