The algebraic geometry of perfect and sequential equilibrium: an extension

摘要

We extend the generic equivalence result of Blume and Zame (Econometrica 62:783-794, 1994) to a broader context of perfectly and sequentially rational strategic behavior (including equilibrium and nonequilibrium behavior) through a unifying solution concept of "mutually acceptable course of action" (MACA) proposed by Greenberg et al. (Econ Theory 40:91-112, 2009. 10.1007/s00199-008-0349-5). As a by-product, we show, in the affirmative, Dekel et al.'s (J Econ Theory 89:165-185, 1999) conjecture on the generic equivalence between the sequential and perfect versions of rationalizable self-confirming equilibrium.