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The iterative elimination of strongly dominated strategies (IESDS) and mixed-equilibrium solution concepts are studied in an iterated two-person investment game with discrete strategy spaces, non-recoverable investments, and either equal or unequal investment capital. In this game, the player...
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The two-person centipede game is one of the most celebrated paradoxes of backward induction in complete information extensive form games. An experimental investigation of a three-person centipede game shows that the paradoxical results are strongly affected by the size of the stakes. When the...
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