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Imperfectly Observable Commitments inn-Player Games

  • Guth, Werner
  • Kirchsteiger, Georg
  • Ritzberger, Klaus

In a two-stage extensive form game where followers can observe moves by leaders only with noise, pure subgame perfect Nash equilibria of the limiting game without noise may not survive arbitrarily small noise. Still, for generic games, there is always at least one subgame perfect equilibrium outcome of the game with no noise that is approximated by equilibrium outcomes of games with small noise. This, however, depends crucially on generic payoffs.

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Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 23 (1998)
Issue (Month): 1 (April)
Pages: 54-74

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Handle: RePEc:eee:gamebe:v:23:y:1998:i:1:p:54-74
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  1. Kohlberg, Elon & Mertens, Jean-Francois, 1986. "On the Strategic Stability of Equilibria," Econometrica, Econometric Society, vol. 54(5), pages 1003-37, September.
  2. Ritzberger, Klaus, 1994. "The Theory of Normal Form Games form the Differentiable Viewpoint," International Journal of Game Theory, Springer, vol. 23(3), pages 207-36.
  3. van Damme, E.E.C. & Hurkens, J.P.M., 1994. "Games with imperfectly observable commitment," Discussion Paper 1994-64, Tilburg University, Center for Economic Research.
  4. Bagwell, Kyle, 1995. "Commitment and observability in games," Games and Economic Behavior, Elsevier, vol. 8(2), pages 271-280.
  5. van Damme, E.E.C., 1984. "A relation between perfect equilibria in extensive form games and proper equilibria in normal form games," Other publications TiSEM 3734d89e-fd5c-4c80-a230-5, Tilburg University, School of Economics and Management.
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