Cover: Refinements of sequential equilibrium in a legal settlements game

Refinements of sequential equilibrium in a legal settlements game

Published 1987

by Jonathan Cave

Purchase Print Copy

 Format Price
Add to Cart Paperback33 pages $20.00

This paper applies several refinements of sequential equilibrium to a signaling game of legal settlement, in which the informed plaintiff has a continuum of pure strategies. The principal results are that (1) such refinements can greatly reduce the scope of equilibrium behavior; (2) there is no necessary connection between divine and perfect equilibria; and (3) perfect, divine, and proper equilibria of games with continuous pure strategy spaces may use weakly dominated strategies with positive probability.

This report is part of the RAND paper series. The paper was a product of RAND from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.