Authors

Ceren Yilmaz

Type

Text

Type

Dissertation

Advisor

Brusco, Sandro | Dubey, Pradeep | Tauman, Yair | Arkin, Esther.

Date

2014-12-01

Keywords

Economics | Dominated Strategies, Extensive Form Games, Game Theory, Implementation, Mechanism Design, Subgame Perfect Equilibrium

Department

Department of Economics.

Language

en_US

Source

This work is sponsored by the Stony Brook University Graduate School in compliance with the requirements for completion of degree.

Identifier

http://hdl.handle.net/11401/77434

Publisher

The Graduate School, Stony Brook University: Stony Brook, NY.

Format

application/pdf

Abstract

There are games for which all subgame perfect equilibria are such that some (or all) players use weakly dominated strategies. Surely this is undesirable as it diminishes the credibility of equilibria. It is implausible to expect a player to play a weakly dominated strategy just because it is an 'equilibrium strategy'. We focus on the class of finite extensive form games with complete and perfect information and show that in this class of games there exists an undominated subgame perfect equilibrium; a subgame perfect equilibrium in which no player uses a weakly dominated strategy. The results also provide insight as to why one should restrict the class of mechanisms to finite mechanisms where relevant. | 28 pages

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