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Proper Consistency

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  • Geir B. Asheim

    (University of Oslo)

Abstract

Proper consistency is defined by the properties that each player takes all opponent strategies into account (is cautious) and deems one opponent strategy to be infinitely more likely than another if the opponent prefers the one to the other (respects preferences). When there is common certain belief of proper consistency, a most preferred strategy is properly rationalizable. Any strategy used with positive probability in a proper equilibrium is properly rationalizable. Only strategies that lead to the backward induction outcome is properly rationalizable in the strategic form of a generic perfect information game. Proper rationalizability can be used to test the robustness of inductive procedures.

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  • Geir B. Asheim, 2000. "Proper Consistency," Econometric Society World Congress 2000 Contributed Papers 0193, Econometric Society.
    • Handle: RePEc:ecm:wc2000:0193
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    References listed on IDEAS

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    1. Asheim, Geir B. & Dufwenberg, Martin, 2003. "Admissibility and common belief," Games and Economic Behavior, Elsevier, vol. 42(2), pages 208-234, February.
    2. Asheim, Geir B., 2002. "On the epistemic foundation for backward induction," Mathematical Social Sciences, Elsevier, vol. 44(2), pages 121-144, November.

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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