Order Independence for Iterated Weak Dominance

Authors: Marx L.M.¹; Swinkels J.M.²

Source: Games and Economic Behavior, Volume 18, Number 2, February 1997 , pp. 219-245(27)

Buy & download fulltext article:

Price: $52.63 plus tax (Refund Policy)

Abstract:

In general, the result of the elimination of weakly dominated strategies depends on order. We define nice weak dominance . Under nice weak dominance, order does not matter. We identify an important class of games under which nice weak dominance and weak dominance are equivalent, and so the order under weak dominance does not matter. For all games, the result of iterative nice weak dominance is an upper bound on the result from any order of weak dominance. The results strengthen the intuitive relationship between backward induction and weak dominance and shed light on some computational problems relating to weak dominance. Journal of Economic Literature Classification Number: C72.

Language: English

Document Type: Research article

Affiliations: 1: W. E. Simon Graduate School of Business Administration, University of Rochester, Rochester, New York, 14627 2: J. L. Kellogg Graduate School of Management, Northwestern University, Evanston, Illinois, 60208

Publication date: 1997-02-01