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A Refinement of Sequential Equilibrium with Application to Decentralized Collusion

Author

Listed:
  • James Schummer
  • Peter Eso

Abstract

We provide a new equilibrium-refinement (a generalization of the Intuitive Criterion) for dynamic incomplete information games. We discuss the properties of this refinement in a class of games that includes sender-receiver games. We also provide applications (certain incomplete information games where collusion may be initiated in a decentralized way) where our predictions differ from those based on other standard refinements

Suggested Citation

  • James Schummer & Peter Eso, 2004. "A Refinement of Sequential Equilibrium with Application to Decentralized Collusion," 2004 Meeting Papers 483, Society for Economic Dynamics.
    • Handle: RePEc:red:sed004:483
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    More about this item

    Keywords

    equilibrium refinement; collusion;

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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