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 language | English (US) |
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Title of host publication | Models Of Bounded Rationality And Mechanism Design |
Publisher | World Scientific Publishing Co. |
Pages | 1-11 |
Number of pages | 11 |
ISBN (Electronic) | 9789813141339 |
DOIs | |
State | Published - Jan 1 2016 |
ASJC Scopus subject areas
- General Economics, Econometrics and Finance
- General Business, Management and Accounting