Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2003-12-08
Number: 03-098/1
Author-Name: Vitaly Pruzhansky
Author-Email: pruzhansky@tinbergen.nl
Author-Workplace-Name: Faculty of Economics and Business Administration, Vrije Universiteit Amsterdam
Title: On Finding Curb Sets in Extensive Games
Abstract: We characterize strategy sets that are closed under rational behavior (curb) in extensive games of perfect information and finite horizon. It is shown that any such game possesses only one minimal curb set, which necessarily includes all its subgame perfect Nash equilibria. Applications of this result are twofold. First, it lessens computational burden while computing minimal curb sets. Second, it implies that the profile of subgame perfect equilibrium strategies is always stochastically stable in a certain class of games.
Classification-JEL: C72
Keywords: rationalizability; stochastic stability
File-Url: https://papers.tinbergen.nl/03098.pdf
File-Format: application/pdf
File-Size: 257180 bytes
Handle: RePEc:tin:wpaper:20030098