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The following example shows that the set of sequential equilibria is sensitive to the way in which a player makes decisions: it makes a difference whether the player, when called upon to choose an action from among a set of three possible actions, eliminates the actions he will not choose one by one, or simultaneously.

Consider the two extensive-form games below. Show that (2, 2) is a sequential equilibrium payoff in Game A, but not a sequential equilibrium payoff in Game B.

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Game Theory, Economics

  • Category:- Game Theory
  • Reference No.:- M92086018

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