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Strategic equivalence and bounded rationality in extensive form games

Author

Listed:
  • Voorneveld, Mark

    (Dept. of Economics, Stockholm School of Economics)

  • Fagraeus Lundström, Helena

    (Dept. of Mathematics, Royal Institute of Technology, Stockholm, Sweden)

Abstract

In a large family of solution concepts for boundedly rational players --- allowing players to be imperfect optimizers, but requiring that ``better'' responses are chosen with probabilities at least as high as those of ``worse'' responses --- most of Thompson's ``inessential'' transformations for the strategic equivalence of extensive form games become far from inconsequential. Only two of the usual elementary transformations remain truly inessential: the interchange of moves, and replacing a final move by nature by simply taking expected payoffs.

Suggested Citation

  • Voorneveld, Mark & Fagraeus Lundström, Helena, 2005. "Strategic equivalence and bounded rationality in extensive form games," SSE/EFI Working Paper Series in Economics and Finance 605, Stockholm School of Economics.
    • Handle: RePEc:hhs:hastef:0605
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    References listed on IDEAS

    as
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    6. Jacob Goeree & Charles Holt & Thomas Palfrey, 2005. "Regular Quantal Response Equilibrium," Experimental Economics, Springer;Economic Science Association, vol. 8(4), pages 347-367, December.
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    More about this item

    Keywords

    Extensive form games; Quantal response equilibrium; Logit model; Strategic equivalence;
    All these keywords.

    JEL classification:

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

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