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Computing Normal Form Perfect Equilibria for Extensive Two-Person Games

Author

Listed:
  • Bernhard von Stengel

    (Department of Mathematics, London School of Economics, Houghton St, London WC2A 2AE, United Kingdom)

  • Antoon van den Elzen

    (Div. of Humanities and Social Sciences 227-88, California Institute of Technology, Pasadena, CA 91125, U.S.A.)

  • Dolf Talman

    (Div. of Humanities and Social Sciences 227-88, California Institute of Technology, Pasadena, CA 91125, U.S.A.)

Abstract

This paper presents an algorithm for computing an equilibrium of an extensive two-person game with perfect recall. The method is computationally efficient by virtue of using the sequence form, whose size is proportional to the size of the game tree. The equilibrium is traced on a piecewise linear path in the sequence form strategy space from an arbitrary starting vector. If the starting vector represents a pair of completely mixed strategies, then the equilibrium is normal form perfect. Computational experiments compare the sequence form and the reduced normal form, and show that only the sequence form is tractable for larger games. Copyright The Econometric Society 2002.

Suggested Citation

  • Bernhard von Stengel & Antoon van den Elzen & Dolf Talman, 2002. "Computing Normal Form Perfect Equilibria for Extensive Two-Person Games," Econometrica, Econometric Society, vol. 70(2), pages 693-715, March.
    • Handle: RePEc:ecm:emetrp:v:70:y:2002:i:2:p:693-715
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