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The One-Deviation Principle for Sequential Rationality

Author

Listed:
  • : Ebbe Hendon

    (Institute of Economics, University of Copenhagen)

  • Hans Jørgen Jacobsen

    (Institute of Economics, University of Copenhagen)

  • Birgitte Sloth

    (Institute of Economics, University of Copenhagen)

Abstract

In this paper we present a decentralization result which is useful for practical and theoretical work with the concept of sequential equilibrium and related concepts of perfect Bayesian equilibrium. A weak consistency condition which is sufficient to obtain an analogy to the well-known One-Deviation Principle for subgame perfect equilibrium is given.

Suggested Citation

  • : Ebbe Hendon & Hans Jørgen Jacobsen & Birgitte Sloth, 1992. "The One-Deviation Principle for Sequential Rationality," Discussion Papers 92-05, University of Copenhagen. Department of Economics.
    • Handle: RePEc:kud:kuiedp:9205
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    Cited by:

    1. Battigalli, Pierpaolo, 1997. "Dynamic Consistency and Imperfect Recall," Games and Economic Behavior, Elsevier, vol. 20(1), pages 31-50, July.

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