Compactification of Extensive Game Structures and Backward Dominance Procedure

Shuige Liu

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arXiv · 1905.00355

Compactification of Extensive Game Structures and Backward Dominance Procedure

Shuige Liu

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Abstract

We study the relationship between invariant transformations on extensive game structures and backward dominance procedure (BD), a generalization of the classical backward induction introduced in Perea (2014). We show that behavioral equivalence with unambiguous orderings of information sets, a critical property that guarantees BD's applicability, can be characterized by the classical Coalescing and a modified Interchange/Simultanizing in Battigalli et al. (2020). We also give conditions on transformations that improve BD's efficiency. In addition, we discuss the relationship between transformations and Bonanno (2014)'s generalized backward induction.

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Shuige Liu. 2019-05-01. Compactification of Extensive Game Structures and Backward Dominance Procedure. https://arxiv.org/abs/1905.00355

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