The algebraic geometry of perfect and sequential equilibrium: an extension

Luo, Xiao, Qian, Xuewen and Sun, Yang (2020) The algebraic geometry of perfect and sequential equilibrium: an extension. Economic Theory . ISSN 0938-2259

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We extend the generic equivalence result of Blume and Zame (Econometrica 62: 783-794, 1994) to a broader context of perfectly and sequentially rational strategic behavior (including equilibrium and nonequilibrium behavior) through a unifying solution concept of "mutually acceptable course of action" (MACA) proposed by Greenberg et al. (2009). As a by-product, we show, in the affirmative, Dekel et al.'s (1999) conjecture on the generic equivalence between the sequential and perfect versions of rationalizable self-confirming equilibrium. JEL Classification: C70, C72

Item Type: Article
Keywords: Extensive forms; generic payoffs; perfect rationality; sequential rationality; MACA; semi-algebraic sets
Schools/Departments: University of Nottingham Ningbo China > Faculty of Humanities and Social Sciences > School of Economics
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Depositing User: Zhou, Elsie
Date Deposited: 28 Apr 2020 01:38
Last Modified: 28 Apr 2020 01:38

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