The Equivalence of the Dekel-Fudenberg Iterative Procedure and Weakly Perfect Rationalizability
Two approaches have been proposed in the literature to refine the rationalizability solution concept: either assuming that players make small errors when playing their strategies, or assuming that there is a small amount of payoff uncertainty. We show that both approaches lead to the same refinement if errors are made according to the concept of weakly perfect rationalizability, and there is payoff uncertainty as in Dekel and Fudenberg [Journal of Economic Theory 52 (1990), 243-267]. For both cases, the strategies that survive are obtained by starting with one round of elimination of weakly dominated strategies followed by many rounds of elimination of strictly dominated strategies.
|Date of creation:||Mar 1998|
|Date of revision:|
|Publication status:||Published in Economic Theory (2000), 15(2): 677-687|
|Contact details of provider:|| Postal: |
Phone: (203) 432-3702
Fax: (203) 432-6167
Web page: http://cowles.econ.yale.edu/
More information through EDIRC
|Order Information:|| Postal: Cowles Foundation, Yale University, Box 208281, New Haven, CT 06520-8281 USA|
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.:
- D. B. Bernheim, 2010.
"Rationalizable Strategic Behavior,"
Levine's Working Paper Archive
514, David K. Levine.
- T. Börgers, 2010.
"Weak Dominance and Approximate Common Knowledge,"
Levine's Working Paper Archive
378, David K. Levine.
- Vincent J. Vannetelbosch & P. Jean-Jacques Herings, 1999.
"Refinements of rationalizability for normal-form games,"
International Journal of Game Theory,
Springer, vol. 28(1), pages 53-68.
- HERINGS, Jean - Jacques & VANNETELBOSCH, Vincent, 1997. "Refinements of rationalizability for normal-form games," CORE Discussion Papers 1997002, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Herings, P.J.J. & Vannetelbosch, V., 1997. "Refinements of Rationalizability for Normal-Form Games," Discussion Paper 1997-03, Tilburg University, Center for Economic Research.
- Ben-Porath, Elchanan, 1997.
"Rationality, Nash Equilibrium and Backwards Induction in Perfect-Information Games,"
Review of Economic Studies,
Wiley Blackwell, vol. 64(1), pages 23-46, January.
- Ben-Porath, E., 1992. "Rationality, Nash Equilibrium and Backward Induction in Perfect Information Games," Papers 14-92, Tel Aviv - the Sackler Institute of Economic Studies.
- Drew Fudenberg & Eddie Dekel, 1987.
"Rational Behavior with Payoff Uncertainty,"
471, Massachusetts Institute of Technology (MIT), Department of Economics.
- Pearce, David G, 1984. "Rationalizable Strategic Behavior and the Problem of Perfection," Econometrica, Econometric Society, vol. 52(4), pages 1029-50, July.
- Adam Brandenburger & Eddie Dekel, 2014.
"Rationalizability and Correlated Equilibria,"
World Scientific Book Chapters,
in: The Language of Game Theory Putting Epistemics into the Mathematics of Games, chapter 3, pages 43-57
World Scientific Publishing Co. Pte. Ltd..
- Gul, Faruk, 1996. "Rationality and Coherent Theories of Strategic Behavior," Journal of Economic Theory, Elsevier, vol. 70(1), pages 1-31, July.
When requesting a correction, please mention this item's handle: RePEc:cwl:cwldpp:1173. 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: (Glena Ames)
If references are entirely missing, you can add them using this form.