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AGM-consistency and perfect Bayesian equilibrium. Part II: from PBE to sequential equilibrium

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  • Giacomo Bonanno

    (University of California)

Abstract

In (Bonanno, Int J Game Theory 42:567–592, 2013) a general notion of perfect Bayesian equilibrium (PBE) for extensive-form games was introduced and shown to be intermediate between subgame-perfect equilibrium and sequential equilibrium. Besides sequential rationality, the ingredients of the proposed notion are (1) the existence of a plausibility order on the set of histories that rationalizes the given assessment and (2) the notion of Bayesian consistency relative to the plausibility order. We show that a cardinal property of the plausibility order and a strengthening of the notion of Bayesian consistency provide necessary and sufficient conditions for a PBE to be a sequential equilibrium.

Suggested Citation

  • Giacomo Bonanno, 2016. "AGM-consistency and perfect Bayesian equilibrium. Part II: from PBE to sequential equilibrium," International Journal of Game Theory, Springer;Game Theory Society, vol. 45(4), pages 1071-1094, November.
    • Handle: RePEc:spr:jogath:v:45:y:2016:i:4:d:10.1007_s00182-015-0506-6
    DOI: 10.1007/s00182-015-0506-6
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    References listed on IDEAS

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    Cited by:

    1. Galanis, S. & Ioannou, C. & Kotronis, S., 2019. "Information Aggregation Under Ambiguity: Theory and Experimental Evidence," Working Papers 20/05, Department of Economics, City University London.
    2. Giacomo Bonanno, 2021. "Rational play in games: A behavioral approach," Working Papers 344, University of California, Davis, Department of Economics.

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