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Bayesian equilibria (PBE) involving both vengeful and non-vengeful types. We then derive two (long run) EPBE, one where both …
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In (5) a solution concept for extensive-form games was introduced, called perfect Bayesian equilibrium (PBE), and shown to be a strict refinement of subgame-perfect equilibrium; it was also shown that, in turn, sequential equilibrium (SE) is a strict refinement of PBE. In (6) the notion of PBE...
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