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Iterated strict dominance in general games

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  • Chen, Yi-Chun
  • Long, Ngo Van
  • Luo, Xiao

Abstract

We offer a definition of iterated elimination of strictly dominated strategies (IESDS) for games with (in)finite players, (non)compact strategy sets, and (dis)continuous payoff functions. IESDS is always a well-defined order independent procedure that can be used to solve Nash equilibrium in dominance-solvable games. We characterize IESDS by means of a "stability"" criterion, and offer a sufficient and necessary epistemic condition for IESDS. We show by an example that IESDS may generate spurious Nash equilibria in the class of Reny's better-reply secure games. We provide sufficient/necessary conditions under which IESDS preserves the set of Nash equilibria." Nous donnons une définition de l'élimination itérative des stratégies qui sont strictement donimées (EISSD) pour les jeux avec un nombre fini (ou infini) de joueurs , des ensembles de stratégies compactes (ou non-compactes), et des fonctions de gains continues (ou non-continues). Le processus EISSD est bien défini et indépendant de l'ordre d'élimination. Nous donnons une caractérisation du processus EISSD en utilisant un critère de stabilité et offrons une condition épistémologique. Nous démontrons que le processus EISSD peut produire des équilibres faux dans la classe des jeux de meilleures réponses sécuritaires de Reny. Nous donnons des conditions nécessaires et suffisantes pour que le processus EISSD conserve l'ensemble des équilibre de Nash.
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Suggested Citation

  • Chen, Yi-Chun & Long, Ngo Van & Luo, Xiao, 2007. "Iterated strict dominance in general games," Games and Economic Behavior, Elsevier, vol. 61(2), pages 299-315, November.
  • Handle: RePEc:eee:gamebe:v:61:y:2007:i:2:p:299-315
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    More about this item

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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