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arXiv · 2504.16908

Axiomatic Equilibrium Selection: The Case of Generic Extensive Form Games

Srihari Govindan·Robert B. Wilson
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Abstract

A solution concept that is a refinement of Nash equilibria selects for each finite game a nonempty collection of closed and connected subsets of Nash equilibria as solutions. We impose three axioms for such solution concepts. The axiom of backward induction requires each solution to contain a quasi-perfect equilibrium. Two invariance axioms posit that solutions of a game are the same as those of a game obtained by the addition of strategically irrelevant strategies and players. Stability satisfies these axioms; and any solution concept that satisfies them must, for generic extensive-form games, select from among its stable outcomes. A strengthening of the two invariance axioms provides an analogous axiomatization of components of equilibria with a nonzero index.

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Srihari Govindan, Robert B. Wilson. 2025-04-23. Axiomatic Equilibrium Selection: The Case of Generic Extensive Form Games. https://arxiv.org/abs/2504.16908

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