Equilibrium selection in sequential games with imperfect information

B-Tier
Journal: Games and Economic Behavior
Year: 2018
Volume: 109
Issue: C
Pages: 465-483

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Games with imperfect information often feature multiple equilibria, which depend on beliefs off the equilibrium path. Standard selection criteria such as passive, symmetric or wary beliefs rest on ad hoc restrictions on beliefs. We propose a new selection criterion that imposes no restrictions on beliefs: we select the action profile that is supported in equilibrium by the largest set of beliefs. We conduct an experiment to compare the predictive power of the existing and our novel selection criteria in an application on vertical multi-lateral contracting. We find that our criterion outperforms the other selection criteria.

Technical Details

RePEc Handle
repec:eee:gamebe:v:109:y:2018:i:c:p:465-483
Journal Field
Theory
Author Count
4
Added to Database
2026-01-25