Abstract

This article investigateS epistemic conditions for a sequential equilibrium in an extensive form game with imperfect information: If players mutually know that all players maximize own expected payoffs for any information sets in their final decisions, then their behaviors with belief yield a sequential equilibrium. This result is an extension of [2] in a perfect information game In this article, we propose the notion of μ-rationality, by which we mean that player knows that he maximizes his own payoff according to the common-belief μ. We also introduce the notion of μ-consistency in imperfect information game. Our main theorem states that mutual knowledge of both μ-rationality and μ-consistency induces a sequential equilibrium outcome in an extensive form game.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.