Random extensive form games

Research output: Contribution to journalArticlepeer-review

Abstract

We consider two-player random extensive form games where the payoffs at the leaves are independently drawn at random from a given feasible set C. We study the asymptotic distribution of the subgame perfect equilibrium outcome for binary-trees with increasing depth in various random (or deterministic) assignments of players to nodes. We characterize the assignments under which the asymptotic distribution concentrates around a point. Our analysis provides a novel way with a solid strategic justification to implement a Pareto efficient outcome for two-player implementation problems.

Original languageEnglish
Pages (from-to)517-535
Number of pages19
JournalJournal of Economic Theory
Volume166
DOIs
StatePublished - 1 Nov 2016

Keywords

  • Extensive form games
  • Implementation
  • Pareto efficiency
  • Random games
  • Subgame-perfect equilibrium

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

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