IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2304.05515.html

A Comparison of Cursed Sequential Equilibrium and Sequential Cursed Equilibrium: Different Concepts of Cursedness in Dynamic Games

Author

Listed:
  • Meng-Jhang Fong
  • Po-Hsuan Lin
  • Thomas R. Palfrey

Abstract

Cursed Equilibrium of Eyster and Rabin (2005) has been a leading theory for explaining winner's-curse-type behavior in static Bayesian games, but it faces conceptual limitations when applied to dynamic games. Two recent extensions, Cursed Sequential Equilibrium (CSE) by Fong, Lin and Palfrey (2025) and Sequential Cursed Equilibrium (SCE) by Cohen and Li (2026), address these limitations in fundamentally different ways. Complementing these two papers, this paper provides a systematic comparison of CSE and SCE, clarifying their conceptual foundations and technical implications, including their notions of cursedness, belief updating, and treatment of public histories.

Suggested Citation

  • Meng-Jhang Fong & Po-Hsuan Lin & Thomas R. Palfrey, 2023. "A Comparison of Cursed Sequential Equilibrium and Sequential Cursed Equilibrium: Different Concepts of Cursedness in Dynamic Games," Papers 2304.05515, arXiv.org, revised Mar 2026.
    • Handle: RePEc:arx:papers:2304.05515
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/2304.05515
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Fudenberg, Drew & Tirole, Jean, 1991. "Perfect Bayesian equilibrium and sequential equilibrium," Journal of Economic Theory, Elsevier, vol. 53(2), pages 236-260, April.
    2. Jehiel, Philippe, 2005. "Analogy-based expectation equilibrium," Journal of Economic Theory, Elsevier, vol. 123(2), pages 81-104, August.
    3. Jehiel, Philippe & Koessler, Frédéric, 2008. "Revisiting games of incomplete information with analogy-based expectations," Games and Economic Behavior, Elsevier, vol. 62(2), pages 533-557, March.
    4. Shani Cohen & Shengwu Li, 2022. "Sequential Cursed Equilibrium," Papers 2212.06025, arXiv.org, revised Jul 2025.
    Full references (including those not matched with items on IDEAS)

    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. Dan Levin & Luyao Zhang, 2022. "Bridging Level-K to Nash Equilibrium," Papers 2202.12292, arXiv.org, revised Feb 2022.
    2. Carrillo, Juan D. & Palfrey, Thomas R., 2011. "No trade," Games and Economic Behavior, Elsevier, vol. 71(1), pages 66-87, January.
    3. Bayona, Anna & Manzano, Carolina, 2024. "Competition in schedules with cursed traders," Journal of Economic Theory, Elsevier, vol. 222(C).
    4. Hagenbach, Jeanne & Koessler, Frédéric, 2020. "Cheap talk with coarse understanding," Games and Economic Behavior, Elsevier, vol. 124(C), pages 105-121.
    5. Miettinen, Topi, 2008. "Analogy-based Expectations and the Partially Cursed Equilibrium," SSE/EFI Working Paper Series in Economics and Finance 708, Stockholm School of Economics, revised 12 Dec 2008.
    6. David Ettinger & Philippe Jehiel, 2021. "An experiment on deception, reputation and trust," Experimental Economics, Springer;Economic Science Association, vol. 24(3), pages 821-853, September.
    7. Jeanne Hagenbach & Frédéric Koessler, 2019. "Partial Language Competence," Working Papers hal-03393108, HAL.
    8. repec:cep:stitep:566 is not listed on IDEAS
    9. Eliaz, Kfir & Spiegler, Ran & Thysen, Heidi C., 2021. "Persuasion with endogenous misspecified beliefs," European Economic Review, Elsevier, vol. 134(C).
    10. Gilboa, Itzhak & Samuelson, Larry & Schmeidler, David, 2022. "Learning (to disagree?) in large worlds," Journal of Economic Theory, Elsevier, vol. 199(C).
    11. Joseph Y. Halpern & Yuval Heller & Eyal Winter, 2022. "The Benefits of Coarse Preferences," Papers 2201.10141, arXiv.org, revised Jun 2023.
    12. Milo Bianchi & Philippe Jehiel, 2019. "Bundling, Belief Dispersion, and Mispricing in Financial Markets," Working Papers halshs-02183306, HAL.
    13. repec:spo:wpecon:info:hdl:2441/3b2230a4419v9ojcpu27tsdrtb is not listed on IDEAS
    14. Fudenberg, Drew & Romanyuk, Gleb & Strack, Philipp, 2017. "Active learning with a misspecified prior," Theoretical Economics, Econometric Society, vol. 12(3), September.
    15. Shani Cohen & Shengwu Li, 2022. "Sequential Cursed Equilibrium," Papers 2212.06025, arXiv.org, revised Jul 2025.
    16. David Ettinger & Philippe Jehiel, 2004. "Towards a Theory of Deception," Levine's Bibliography 122247000000000247, UCLA Department of Economics.
    17. Spiegler, Ran, 2021. "Modeling players with random “data access”," Journal of Economic Theory, Elsevier, vol. 198(C).
    18. Nick Vikander, 2011. "Capacity Constraints and Beliefs about Demand," Tinbergen Institute Discussion Papers 11-015/1, Tinbergen Institute.
    19. Jehiel, Philippe & Singh, Juni, 2021. "Multi-state choices with aggregate feedback on unfamiliar alternatives," Games and Economic Behavior, Elsevier, vol. 130(C), pages 1-24.
    20. Mira Frick & Ryota Iijima & Yuhta Ishii, 2018. "Dispersed Behavior and Perceptions in Assortative Societies," Cowles Foundation Discussion Papers 2128, Cowles Foundation for Research in Economics, Yale University.
    21. Jehiel, Philippe & Mohlin, Erik, 2021. "Cycling and Categorical Learning in Decentralized Adverse Selection Economies," Working Papers 2021:11, Lund University, Department of Economics.
    22. Cristián Sánchez, 2025. "Equilibrium Consequences of Vouchers Under Simultaneous Extensive and Intensive Margins Competition," Working Papers Central Bank of Chile 1038, Central Bank of Chile.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:arx:papers:2304.05515. See general information about how to correct material in RePEc.

    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: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.