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Fall back proper equilibrium

Author

Listed:
  • John Kleppe

    (Tilburg University)

  • Peter Borm

    (Tilburg University)

  • Ruud Hendrickx

    (Tilburg University)

Abstract

Proper equilibrium plays a prominent role in the literature on non-cooperative games. The underlying thought experiment in which the players play a passive role is, however, unsatisfying, as it gives no justification for its fundamental idea that severe mistakes are made with a significantly smaller probability than innocuous ones. In this paper, we introduce a more active role for the players, leading to the refinement of fall back proper equilibrium.

Suggested Citation

  • John Kleppe & Peter Borm & Ruud Hendrickx, 2017. "Fall back proper equilibrium," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 25(2), pages 402-412, July.
    • Handle: RePEc:spr:topjnl:v:25:y:2017:i:2:d:10.1007_s11750-017-0447-2
    DOI: 10.1007/s11750-017-0447-2
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    References listed on IDEAS

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    1. Kleppe, John & Borm, Peter & Hendrickx, Ruud, 2012. "Fall back equilibrium," European Journal of Operational Research, Elsevier, vol. 223(2), pages 372-379.
    2. Robson~ Arthur J., 1994. "An Informationally Robust Equilibrium for Two-Person Nonzero-Sum Games," Games and Economic Behavior, Elsevier, vol. 7(2), pages 233-245, September.
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    8. Kleppe, J. & Borm, P.E.M. & Hendrickx, R.L.P., 2012. "Fall Back Equilibrium for 2 x n Bimatrix Games," Other publications TiSEM 1c83ee91-3e1b-4139-a180-c, Tilburg University, School of Economics and Management.
    9. MERTENS, Jean-François, 1991. "Stable equilibria - a reformulation. Part II. Discussion of the definition, and further results," LIDAM Reprints CORE 960, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    Cited by:

    1. Milgrom, Paul & Mollner, Joshua, 2021. "Extended proper equilibrium," Journal of Economic Theory, Elsevier, vol. 194(C).

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