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Revision proofness

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  • Ales, Laurence
  • Sleet, Christopher

Abstract

We analyze an equilibrium concept called revision-proofness for infinite-horizon games played by a dynasty of players. Revision-proofness requires strategies to be robust to joint deviations by multiple players and is a refinement of sub-game perfection. Sub-game perfect paths that can only be sustained by reversion to paths with payoffs below those of an alternative path are not revision-proof. However, for the important class of quasi-recursive games careful construction of off-equilibrium play can render many, and in some cases all, sub-game perfect paths revision-proof.

Suggested Citation

  • Ales, Laurence & Sleet, Christopher, 2014. "Revision proofness," Journal of Economic Theory, Elsevier, vol. 152(C), pages 324-355.
    • Handle: RePEc:eee:jetheo:v:152:y:2014:i:c:p:324-355
    DOI: 10.1016/j.jet.2014.03.008
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    Cited by:

    1. Marco Bassetto & Zhen Huo & José-Víctor Ríos-Rull, 2018. "Organizational Equilibrium with Capital," Working Paper Series WP-2018-20, Federal Reserve Bank of Chicago.
    2. Ales, Laurence & Maziero, Pricila, 2016. "Non-exclusive dynamic contracts, competition, and the limits of insurance," Journal of Economic Theory, Elsevier, vol. 166(C), pages 362-395.
    3. Wataru Nozawa, 2018. "On nonexistence of reconsideration-proof equilibrium with state variables," Theory and Decision, Springer, vol. 85(2), pages 253-273, August.
    4. Ales, Laurence & Sleet, Christopher, 2014. "Revision proofness," Journal of Economic Theory, Elsevier, vol. 152(C), pages 324-355.

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    More about this item

    Keywords

    Dynamic games; Repeated games; Renegotiation-proofness; Equilibrium refinements;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination

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