Robust equilibrium outcomes in sequential games under almost common certainty of payoffs

Article dans une revue: We analyze the robustness of equilibria in sequential games when there is almost common certainty of payoffs. We show that a generic extensive-form game may have no robust equilibrium behavior, but has at least one robust equilibrium outcome, which is induced by a proper equilibrium in its normal-form representation. Therefore, backward induction leads to a unique robust outcome in a generic perfect-information game. We also discuss close relation between robustness to incomplete information and strategic stability. Finally, we present the implications of our results for the robustness of subgame-perfect implementation.

Auteur(s)

Satoru Takahashi, Olivier Tercieux

Revue
  • Journal of Economic Theory
Date de publication
  • 2020
Mots-clés JEL
C72 C73 D82 D83
Mots-clés
  • Incomplete information
  • Robustness
  • Higher-order beliefs
  • Refinements
  • Subgame-perfect implementation
Version
  • 1
Volume
  • 188