2013
DOI: 10.3982/ecta11419
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Every Choice Function Is Backwards-Induction Rationalizable

Abstract: Abstract. A choice function is backwards-induction rationalizable if there exists a finite perfect-information extensive-form game such that, for each subset of alternatives, the backwards-induction outcome of the restriction of the game to that subset of alternatives coincides with the choice from that subset. We prove that every choice function is backwards-induction rationalizable. Journal of Economic Literature Classification Numbers: C72; D70. * We thank Sean Horan for useful discussions.

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Cited by 17 publications
(2 citation statements)
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References 13 publications
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“…Since my focus is the implementation of decision rules, it is necessary to adapt an agenda T on the universal issue X to every sub‐issue AX. The most natural way to do this is to remove all of the terminal nodes labeled by infeasible alternatives (see Xu and Zhou 2007, Horan 2011, Bossert and Sprumont 2013).…”
Section: Methodsmentioning
confidence: 99%
“…Since my focus is the implementation of decision rules, it is necessary to adapt an agenda T on the universal issue X to every sub‐issue AX. The most natural way to do this is to remove all of the terminal nodes labeled by infeasible alternatives (see Xu and Zhou 2007, Horan 2011, Bossert and Sprumont 2013).…”
Section: Methodsmentioning
confidence: 99%
“…To solve this model, the decision-making factors of the game players must be gradually analyzed according to the backward induction method [51,52]. In contrast with the transaction process shown in Figure 1, first, the profit function of the market follower must be analyzed to solve the profit maximization condition under market sales unit price p. Then, incorporate this condition into the profit function of the market leader and solve its profit maximization condition under revenue-sharing ratio α and viewing effect t. Thus, the equilibrium solution of the dynamic game model with complete information can be obtained.…”
Section: Equilibrium Analysis Of the Stackelberg Game Modelmentioning
confidence: 99%