The equivalence of the Dekel-Fudenberg iterative procedure and weakly perfect rationalizability

B-Tier
Journal: Economic Theory
Year: 2000
Volume: 15
Issue: 3
Pages: 677-687

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

Two approaches have been proposed in the literature to refine the rationalizability solution concept: either assuming that a player believes that with small probability her opponents choose strategies that are irrational, or assuming that their is a small amount of payoff uncertainty. We show that both approaches lead to the same refinement if strategy perturbations are made according to the concept of weakly perfect rationalizability, and if there is payoff uncertainty as in Dekel and Fudenberg [J. of Econ. Theory 52 (1990), 243-267]. For both cases, the strategies that survive are obtained by starting with one round of elimination of weakly dominated strategies followed by many rounds of elimination of strictly dominated strategies.

Technical Details

RePEc Handle
repec:spr:joecth:v:15:y:2000:i:3:p:677-687
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25