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fbtwitterlinkedinvimeoflicker grey 14rssslideshare1
Hammond, Peter J. (2008)
Publisher: University of Warwick, Department of Economics
Languages: English
Types: Book
Subjects: HB

Classified by OpenAIRE into

ACM Ref: ComputingMilieux_PERSONALCOMPUTING, TheoryofComputation_GENERAL, TheoryofComputation_MISCELLANEOUS
arxiv: Computer Science::Computer Science and Game Theory
Von Neumann (1928) not only introduced a fairly general version of the extensive form game concept. He also hypothesized that only the normal form was relevant to rational play. Yet even in Battle of the Sexes, this hypothesis seems contradicted by players' actual behaviour in experiments. Here a refined Nash equilibrium is proposed for games where one player moves first, and the only other player moves second without knowing the first move. The refinement relies on a tacit understanding of the only credible and straightforward perfect Bayesian equilibrium in a corresponding game allowing a predictable direct form of cheap talk.

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