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 language | English |
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Pages (from-to) | 517-535 |
Number of pages | 19 |
Journal | Journal of Economic Theory |
Volume | 166 |
DOIs | |
State | Published - 1 Nov 2016 |
Keywords
- Extensive form games
- Implementation
- Pareto efficiency
- Random games
- Subgame-perfect equilibrium
All Science Journal Classification (ASJC) codes
- Economics and Econometrics