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Compactification of Extensive Game Structures and Backward Dominance Procedure

2019/05/01 by Shuige Liu, Liu, Shuige
Decision Sciences · Economics, Econometrics and Finance · Social Sciences · #Experimental Behavioral Economics Studies #FOS: Economics and business #Game Theory and Applications #Game Theory and Voting Systems #Theoretical Economics (econ.TH)

paper · pdf · doi:10.48550/arxiv.1905.00355

openalex publication_date 2019/05/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28

Abstract

We study the relationship between invariant transformations on extensive game structures and backward dominance procedure (BD), a generalization of the classical backward induction introduced in Perea (2014). We show that behavioral equivalence with unambiguous orderings of information sets, a critical property that guarantees BD's applicability, can be characterized by the classical Coalescing and a modified Interchange/Simultanizing in Battigalli et al. (2020). We also give conditions on transformations that improve BD's efficiency. In addition, we discuss the relationship between transformations and Bonanno (2014)'s generalized backward induction.

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