The algebraic geometry of perfect and sequential equilibrium: an extension

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 ac...

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Main Authors: Luo, Xiao, Qian, Xuewen, Sun, Yang
Format: Article
Language:English
Published: Springer 2020
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Online Access:https://eprints.nottingham.ac.uk/60452/
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author Luo, Xiao
Qian, Xuewen
Sun, Yang
author_facet Luo, Xiao
Qian, Xuewen
Sun, Yang
author_sort Luo, Xiao
building Nottingham Research Data Repository
collection Online Access
description 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
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spelling nottingham-604522020-04-28T01:38:41Z https://eprints.nottingham.ac.uk/60452/ The algebraic geometry of perfect and sequential equilibrium: an extension Luo, Xiao Qian, Xuewen Sun, Yang 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 Springer 2020-03-30 Article PeerReviewed application/pdf en cc_by https://eprints.nottingham.ac.uk/60452/1/ECTH-D-19-00288_R2%20%285%29.pdf Luo, Xiao, Qian, Xuewen and Sun, Yang (2020) The algebraic geometry of perfect and sequential equilibrium: an extension. Economic Theory . ISSN 0938-2259 Extensive forms; generic payoffs; perfect rationality; sequential rationality; MACA; semi-algebraic sets http://dx.doi.org/10.1007/s00199-020-01259-z doi:10.1007/s00199-020-01259-z doi:10.1007/s00199-020-01259-z
spellingShingle Extensive forms; generic payoffs; perfect rationality; sequential rationality; MACA; semi-algebraic sets
Luo, Xiao
Qian, Xuewen
Sun, Yang
The algebraic geometry of perfect and sequential equilibrium: an extension
title The algebraic geometry of perfect and sequential equilibrium: an extension
title_full The algebraic geometry of perfect and sequential equilibrium: an extension
title_fullStr The algebraic geometry of perfect and sequential equilibrium: an extension
title_full_unstemmed The algebraic geometry of perfect and sequential equilibrium: an extension
title_short The algebraic geometry of perfect and sequential equilibrium: an extension
title_sort algebraic geometry of perfect and sequential equilibrium: an extension
topic Extensive forms; generic payoffs; perfect rationality; sequential rationality; MACA; semi-algebraic sets
url https://eprints.nottingham.ac.uk/60452/
https://eprints.nottingham.ac.uk/60452/
https://eprints.nottingham.ac.uk/60452/