This paper reconsiders the valuation equilibrium concept (Jehiel and Samet, 2007) and proposes an additional regularity condition concerning the playersʼ equilibrium strategies. The condition, which requires equilibrium strategies to induce the same local behaviour at all nodes with...

We study communication in a two-player coordination game with Pareto-ranked equilibria. Prior research demonstrates that efficient coordination is difficult without communication but obtains regularly with (mandatory) costless pre-play messages. In a laboratory experiment, we modify...

Stackelberg-like games show a situation where there is a clear advantage in moving first. In a thought provoking article, Bagwell [1995] shows that this advantage may not be robust against imperfect observations of the first move. We explore these ideas in the context of forward induction in...

We analyze which normal form solution concepts capture the notion of forward induction, as defined by van Damme (JET, 1989) in the class of generic two player normal form games preceded by an outside option. We find that none of the known strategic stability concepts (including Mertens stable...

The citizen-candidate approach, proposed to study the performance of representative democracies, builds on a multi-stage game where the same agents are asked whether or not to become a candidate and, successively, to vote. Consistently, the solution concept adopted in Besley and Coate (1997)...

The paper deals with the driving forces behind behavior selection in both forward induction refinements and discrete evolutionary processes with mutations. Its main purpose is to analyse an important difference due to the support of the mutations. It shows that similar driving forces can allow...

The citizen-candidate approach, proposed to study the performance of representative democracies, builds on a multi-stage game where the same agents are asked whether or not to become a candidate and, successively, to vote. Consistently, the solution concept adopted in Besley and Coate (1997)...

Forward induction is the notion that players in a game assume, even when confronted with an unexpected event, that their opponents chose rationally. It is often motivated by invariance, namely, that the normal form game captures all strategically relevant information. To be consistent with this...

We auction scarce rights to play the Proposer and Responder positions in ultimatum games. As a control treatment, we randomly allocate these rights and charge exogenous participation fees. These participation fee sequences match the auction price sequence from a session of the original...