EconPapers    
Economics at your fingertips  
 

Strong Forward Induction

Bingyong Zheng ()

The B.E. Journal of Theoretical Economics, 2017, vol. 17, issue 2, 16

Abstract: Forward induction, as defined by Govindan and Wilson (2009. “On Forward Induction.” Econometrica 77:1–28), places a local dominance condition on off-equilibrium beliefs that restricts relevant strategy profiles for an equilibrium outcome to be infinitely more likely than profiles that include irrelevant strategies. Meanwhile, it places no global dominance restrictions and thus leaves open the possibility that a dominated strategy is deemed more likely than strategies dominating it. This paper defines strong forward induction, which improves upon forward induction. We also develop a solution concept called strong forward induction equilibrium that is obtained from iterative application of the strong forward induction criterion.

Keywords: forward induction; belief; equilibrium refinement (search for similar items in EconPapers)
JEL-codes: C72 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.degruyter.com/view/j/bejte.2017.17.iss ... -0067.xml?format=INT (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:bejtec:v:17:y:2017:i:2:p:16:n:7

Ordering information: This journal article can be ordered from
https://www.degruyter.com/view/j/bejte

Access Statistics for this article

The B.E. Journal of Theoretical Economics is currently edited by Burkhard C. Schipper

More articles in The B.E. Journal of Theoretical Economics from De Gruyter
Bibliographic data for series maintained by Peter Golla ().

 
Page updated 2019-10-22
Handle: RePEc:bpj:bejtec:v:17:y:2017:i:2:p:16:n:7