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Respond to the question: Equilibrium definitions?

11/05/2002 10:07 PM by J. Lee; RE: Equilibrium definitions
Both solution concepts extend subgame perfection to dynamic games of incomplete information. Although they are similar and sometimes identical in some simple games, sequential equilibrium differs from PBE in imposing more restrictions on the way players update their beliefs (From a graduate textbook by Fudenberg and Tirole, "Game Theory"(1991, MIT Press), p.321). Sequential equilibrium requires 'sequential rationality' and 'consistency' conditions on an assessment (a pair of a strategy profile and a system of belief.) For more information, see any graduate text on game theory, for example, Fudenberg and Tirole(1991). Also see a paper "Perfect Bayesian Equilibrium and Sequential Equilibrium" by Fudenberg and Tirole (1991, Journal of Economic Theory 53:236-260.) if you need more rigorous treatments. [Manage messages]

10/29/2002 09:28 AM by Lulu; Equilibrium definitions
What is the difference between Perfect Bayesian Equilibrium and Sequencially equilibrium? [View full text and thread]