IDEAS home Printed from https://ideas.repec.org/a/eee/gamebe/v74y2012i2p709-713.html
   My bibliography  Save this article

Existence of valuation equilibria when equilibrium strategies cannot differentiate between equal ties

Author

Listed:
  • Wichardt, Philipp C.

Abstract

This paper reconsiders the valuation equilibrium concept (Jehiel and Samet, 2007) and proposes an additional regularity condition concerning the playersʼ equilibrium strategies. The condition, which requires equilibrium strategies to induce the same local behaviour at all nodes with “similar” optimal actions, increases both the predictive power and the internal consistency of the concept — especially when used as a tool to study boundedly rational behaviour in games with imperfect information and/or imperfect recall. It is shown not to conflict with existence.

Suggested Citation

  • Wichardt, Philipp C., 2012. "Existence of valuation equilibria when equilibrium strategies cannot differentiate between equal ties," Games and Economic Behavior, Elsevier, vol. 74(2), pages 709-713.
  • Handle: RePEc:eee:gamebe:v:74:y:2012:i:2:p:709-713
    DOI: 10.1016/j.geb.2011.08.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0899825611001370
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.geb.2011.08.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jehiel, Philippe & Samet, Dov, 2005. "Learning to play games in extensive form by valuation," Journal of Economic Theory, Elsevier, vol. 124(2), pages 129-148, October.
    2. Piccione, Michele & Rubinstein, Ariel, 1997. "On the Interpretation of Decision Problems with Imperfect Recall," Games and Economic Behavior, Elsevier, vol. 20(1), pages 3-24, July.
    3. Piccione, Michele & Rubinstein, Ariel, 1997. "The Absent-Minded Driver's Paradox: Synthesis and Responses," Games and Economic Behavior, Elsevier, vol. 20(1), pages 121-130, July.
    4. Jehiel, Philippe & Samet, Dov, 2007. "Valuation equilibrium," Theoretical Economics, Econometric Society, vol. 2(2), June.
    5. Wichardt, Philipp C., 2008. "Existence of Nash equilibria in finite extensive form games with imperfect recall: A counterexample," Games and Economic Behavior, Elsevier, vol. 63(1), pages 366-369, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Seel, Christian & Wichardt, Philipp C., 2012. "How burning money requires a lot of rationality to be effective," Economics Letters, Elsevier, vol. 115(1), pages 111-113.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wichardt, Philipp C., 2010. "Modelling equilibrium play as governed by analogy and limited foresight," Games and Economic Behavior, Elsevier, vol. 70(2), pages 472-487, November.
    2. Igor Kopylov & Joshua Miller, 2018. "Subjective beliefs and confidence when facts are forgotten," Journal of Risk and Uncertainty, Springer, vol. 57(3), pages 281-299, December.
    3. Jehiel, Philippe & Samet, Dov, 2007. "Valuation equilibrium," Theoretical Economics, Econometric Society, vol. 2(2), June.
    4. Sudipta Sarangi & Cary Deck, 2006. "Inducing Absent-Mindedness in the Lab," Departmental Working Papers 2006-09, Department of Economics, Louisiana State University.
    5. Saori Chiba & Kaiwen Leong, 2016. "Behavioral Economics of Crime Rates and Punishment Levels," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 172(4), pages 727-754, December.
    6. Hagenbach, Jeanne & Koessler, Frédéric, 2021. "Selective memory of a psychological agent," Discussion Papers, Research Unit: Market Behavior SP II 2021-201, WZB Berlin Social Science Center.
    7. Burkhard Schipper, 2017. "Kuhn's Theorem for Extensive Games with Unawareness," Working Papers 176, University of California, Davis, Department of Economics.
    8. Kopylov, Igor & Miller, Joshua Benjamin, 2018. "Subjective Beliefs And Confidence When Facts Are Forgotten," OSF Preprints wktcp, Center for Open Science.
    9. Hillas, John & Kvasov, Dmitriy, 2020. "Backward induction in games without perfect recall," Games and Economic Behavior, Elsevier, vol. 124(C), pages 207-218.
    10. Yilmaz Kocer, 2010. "Endogenous Learning with Bounded Memory," Working Papers 1290, Princeton University, Department of Economics, Econometric Research Program..
    11. Alexander Dilger, 2006. "The absent-minded prisoner," Spanish Economic Review, Springer;Spanish Economic Association, vol. 8(4), pages 301-315, December.
    12. Lambert, Nicolas S. & Marple, Adrian & Shoham, Yoav, 2019. "On equilibria in games with imperfect recall," Games and Economic Behavior, Elsevier, vol. 113(C), pages 164-185.
    13. Stefano Ficco & Vladimir A. Karamychev, 2004. "Information Overload in Multi-Stage Selection Procedures," Tinbergen Institute Discussion Papers 04-077/1, Tinbergen Institute.
    14. Burkhard Schipper, 2017. "Kuhn's Theorem for Extensive Games with Unawareness," Working Papers 204, University of California, Davis, Department of Economics.
    15. Lambson, Val & van den Berghe, John, 2015. "Skill, complexity, and strategic interaction," Journal of Economic Theory, Elsevier, vol. 159(PA), pages 516-530.
    16. Deck, Cary & Sarangi, Sudipta, 2009. "Inducing imperfect recall in the lab," Journal of Economic Behavior & Organization, Elsevier, vol. 69(1), pages 64-74, January.
    17. Jude Kline, J., 2002. "Minimum Memory for Equivalence between Ex Ante Optimality and Time-Consistency," Games and Economic Behavior, Elsevier, vol. 38(2), pages 278-305, February.
    18. Ehud Kalai & Eilon Solan, 2000. "Randomization and Simplification," Discussion Papers 1283, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    19. Philippe Jehiel & Jakub Steiner, 2020. "Selective Sampling with Information-Storage Constraints [On interim rationality, belief formation and learning in decision problems with bounded memory]," Economic Journal, Royal Economic Society, vol. 130(630), pages 1753-1781.
    20. von Stengel, Bernhard & Koller, Daphne, 1997. "Team-Maxmin Equilibria," Games and Economic Behavior, Elsevier, vol. 21(1-2), pages 309-321, October.

    More about this item

    Keywords

    Bounded rationality; Valuation equilibrium; Existence; Imperfect recall;
    All these keywords.

    JEL classification:

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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:74:y:2012:i:2:p:709-713. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: http://www.elsevier.com/locate/inca/622836 .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/622836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.