IDEAS home Printed from https://ideas.repec.org/p/pur/prukra/1225.html
   My bibliography  Save this paper

A Refinement of Perfect Equilibria Based On Substitute Sequences

Author

Listed:
  • C. D. Aliprantis
  • I. Topolyan

Abstract

We propose an equilibrium refinement of strict perfect equilibrium for the finite normal form games, which is not known in the literature. Okada came up with the idea of strict perfect equilibrium by strengthening the main definition of a perfect equilibrium, due to Selten [14]. We consider the alternative (and equivalent) definition of perfect equilibrium, based on the substitute sequences, as appeared in Selten [14]. We show that by strengthening and modifiyng this definition slightly, one can obtain a refinement stronger than strict perfectness. We call the new refinement strict substitute perfect equilibrium. The main advantage of this solution concept is that it reflects the local dominance of an equilibrium point. An example is provided to show that a strict perfect equilibrium may fail to be strict substitute perfect.

Suggested Citation

  • C. D. Aliprantis & I. Topolyan, 2009. "A Refinement of Perfect Equilibria Based On Substitute Sequences," Purdue University Economics Working Papers 1225, Purdue University, Department of Economics.
  • Handle: RePEc:pur:prukra:1225
    as

    Download full text from publisher

    File URL: http://www.krannert.purdue.edu/programs/phd/Working-papers-series/2009/1225.pdf
    Download Restriction: no

    More about this item

    Keywords

    Perfect equilibrium; strictly perfect equilibrium; substitute sequence; substitute perfect equilibrium; unit simplex;

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

    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:pur:prukra:1225. 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: (Krannert PHD) or (Rebekah McClure). General contact details of provider: http://edirc.repec.org/data/kspurus.html .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.