Article ID Journal Published Year Pages File Type
7359419 Journal of Economic Theory 2016 29 Pages PDF
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.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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