The refined best-response correspondence in normal form games
This paper provides an in-depth study of the (most) refined best reply correspondence introduced by Balkenborg, Hofbauer, and Kuzmics (2012). An example demonstrates that this correspondence can be very different from the standard best reply correspondence. In two-player games, however, the refined best reply correspondence of a given game is the same as the best reply correspondence of a slightly modified game. The modified game is derived from the original game by reducing the payoff by a small amount for all pure strategies that are weakly inferior. Weakly inferior strategies, for two-player games, are pure strategies that are either weakly dominated or are equivalent to a proper mixture of other pure strategies. Fixed points of the refined best reply correspondence are not equivalent to any known Nash equilibrium refinement. A class of simple communication games demonstrates the usefulness and intuitive appeal of the refined best reply correspondence.
|Date of creation:||15 Apr 2014|
|Date of revision:|
|Contact details of provider:|| Postal: Postfach 10 01 31, 33501 Bielefeld|
Web page: http://www.imw.uni-bielefeld.de/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Dekel, Eddie & Fudenberg, Drew, 1990.
"Rational behavior with payoff uncertainty,"
Journal of Economic Theory,
Elsevier, vol. 52(2), pages 243-267, December.
- Dieter Balkenborg & Josef Hofbauer & Christoph Kuzmics, 2008.
"Refined best-response correspondence and dynamics,"
0806, Exeter University, Department of Economics.
- Hendon, Ebbe & Jacobsen, Hans Jorgen & Sloth, Birgitte, 1996.
"Fictitious Play in Extensive Form Games,"
Games and Economic Behavior,
Elsevier, vol. 15(2), pages 177-202, August.
- Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, June.
- Voorneveld, Mark, 2004. "Preparation," Games and Economic Behavior, Elsevier, vol. 48(2), pages 403-414, August.
- Ritzberger, Klaus, 2002. "Foundations of Non-Cooperative Game Theory," OUP Catalogue, Oxford University Press, number 9780199247868, July.
- Jansen M. J. M. & Jurg A. P. & Borm P. E. M., 1994.
"On Strictly Perfect Sets,"
Games and Economic Behavior,
Elsevier, vol. 6(3), pages 400-415, May.
- T. Börgers, 2010.
"Weak Dominance and Approximate Common Knowledge,"
Levine's Working Paper Archive
378, David K. Levine.
- Adam Brandenburger & Amanda Friedenberg & H. Jerome Keisler, 2008. "Admissibility in Games," Econometrica, Econometric Society, vol. 76(2), pages 307-352, 03.
When requesting a correction, please mention this item's handle: RePEc:bie:wpaper:466. 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: (Bettina Weingarten)
If references are entirely missing, you can add them using this form.