Exploring the Gap between Perfect Bayesian Equilibrium and Sequential Equilibrium
In (Bonanno, 2013), a solution concept for extensive-form games, called perfect Bayesian equilibrium (PBE), was introduced and shown to be a strict refinement of subgame-perfect equilibrium; it was also shown that, in turn, sequential equilibrium (SE) is a strict refinement of PBE. In (Bonanno, 2016...
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| Format: | Article |
| Language: | English |
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MDPI AG
2016-11-01
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| Series: | Games |
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| Online Access: | http://www.mdpi.com/2073-4336/7/4/35 |
| _version_ | 1818494432295518208 |
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| author | Giacomo Bonanno |
| author_facet | Giacomo Bonanno |
| author_sort | Giacomo Bonanno |
| collection | DOAJ |
| description | In (Bonanno, 2013), a solution concept for extensive-form games, called perfect Bayesian equilibrium (PBE), was introduced and shown to be a strict refinement of subgame-perfect equilibrium; it was also shown that, in turn, sequential equilibrium (SE) is a strict refinement of PBE. In (Bonanno, 2016), the notion of PBE was used to provide a characterization of SE in terms of a strengthening of the two defining components of PBE (besides sequential rationality), namely AGM consistency and Bayes consistency. In this paper we explore the gap between PBE and SE by identifying solution concepts that lie strictly between PBE and SE; these solution concepts embody a notion of “conservative” belief revision. Furthermore, we provide a method for determining if a plausibility order on the set of histories is choice measurable, which is a necessary condition for a PBE to be a SE. |
| first_indexed | 2024-12-10T18:06:17Z |
| format | Article |
| id | doaj.art-7e68025416204bc28421ec4920f47e70 |
| institution | Directory Open Access Journal |
| issn | 2073-4336 |
| language | English |
| last_indexed | 2024-12-10T18:06:17Z |
| publishDate | 2016-11-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Games |
| spelling | doaj.art-7e68025416204bc28421ec4920f47e702022-12-22T01:38:36ZengMDPI AGGames2073-43362016-11-01743510.3390/g7040035g7040035Exploring the Gap between Perfect Bayesian Equilibrium and Sequential EquilibriumGiacomo Bonanno0Department of Economics, University of California, Davis, CA 95616-8578, USAIn (Bonanno, 2013), a solution concept for extensive-form games, called perfect Bayesian equilibrium (PBE), was introduced and shown to be a strict refinement of subgame-perfect equilibrium; it was also shown that, in turn, sequential equilibrium (SE) is a strict refinement of PBE. In (Bonanno, 2016), the notion of PBE was used to provide a characterization of SE in terms of a strengthening of the two defining components of PBE (besides sequential rationality), namely AGM consistency and Bayes consistency. In this paper we explore the gap between PBE and SE by identifying solution concepts that lie strictly between PBE and SE; these solution concepts embody a notion of “conservative” belief revision. Furthermore, we provide a method for determining if a plausibility order on the set of histories is choice measurable, which is a necessary condition for a PBE to be a SE.http://www.mdpi.com/2073-4336/7/4/35plausibility orderminimal belief revisionBayesian updatingindependencesequential equilibrium |
| spellingShingle | Giacomo Bonanno Exploring the Gap between Perfect Bayesian Equilibrium and Sequential Equilibrium Games plausibility order minimal belief revision Bayesian updating independence sequential equilibrium |
| title | Exploring the Gap between Perfect Bayesian Equilibrium and Sequential Equilibrium |
| title_full | Exploring the Gap between Perfect Bayesian Equilibrium and Sequential Equilibrium |
| title_fullStr | Exploring the Gap between Perfect Bayesian Equilibrium and Sequential Equilibrium |
| title_full_unstemmed | Exploring the Gap between Perfect Bayesian Equilibrium and Sequential Equilibrium |
| title_short | Exploring the Gap between Perfect Bayesian Equilibrium and Sequential Equilibrium |
| title_sort | exploring the gap between perfect bayesian equilibrium and sequential equilibrium |
| topic | plausibility order minimal belief revision Bayesian updating independence sequential equilibrium |
| url | http://www.mdpi.com/2073-4336/7/4/35 |
| work_keys_str_mv | AT giacomobonanno exploringthegapbetweenperfectbayesianequilibriumandsequentialequilibrium |