An extensive game as a guide for solving a normal game

Research output: Chapter in Book/Report/Conference proceedingChapterpeer-review

Abstract

We show that for solvable games, the calculation of the strategies which survive iterative elimination of dominated strategies in normal games is equivalent to the calculation of the backward induction outcome of some extensive game. However, whereas the normal game form does not provide information on how to carry out the elimination, the corresponding extensive game does. As a by-product, we conclude that implementation using a subgame perfect equilibrium of an extensive game with perfect information is equivalent to implementation through a solution concept which we call guided iteratively elimination of dominated strategies which requires a uniform order of elimination.

Original languageEnglish
Title of host publicationModels Of Bounded Rationality And Mechanism Design
PublisherWorld Scientific Publishing Co.
Pages1-11
Number of pages11
ISBN (Electronic)9789813141339
DOIs
StatePublished - 1 Jan 2016

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