TY - JOUR
T1 - An extensive game as a guide for solving a normal game
AU - Glazer, Jacob
AU - Rubinstein, Ariel
N1 - Funding Information:
* The first author acknowledges financial support from the Israel Institute of Business Research. The second author acknowledges partial financial support from the United States Israel Binational Science Foundation, Grant Number 1011-341. We thank Paolo Battigiali, an associate editor, and a referee of this Journal, for their excellent comments on the first version of this paper.
PY - 1996/7
Y1 - 1996/7
N2 - 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. Journal of Economic Literature Classification Number: C72.
AB - 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. Journal of Economic Literature Classification Number: C72.
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U2 - 10.1006/jeth.1996.0074
DO - 10.1006/jeth.1996.0074
M3 - Article
AN - SCOPUS:0030191550
SN - 0022-0531
VL - 70
SP - 32
EP - 42
JO - Journal of Economic Theory
JF - Journal of Economic Theory
IS - 1
ER -