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Date of this Version

January 2002

Document Type

Research Report

Publication Details

Jeffrey J. Kline (2002) Perfect equilibrium has a lexicographic preference for shorter paths of play

School of Business Working Paper ; No. 2, Jan. 30, 2002

© Copyright Jeffrey J. Kline and the School of Business, Bond University

Abstract

A simple example is used to illustrate one clear distinction between perfect equilibrium and sequential equilibrium. Perfect equilibrium has a lexicographic preference for shorter paths of play. We use this example to disprove the conjecture that: in a game of perfect information, every subgame perfect equilibrium is a perfect equilibrium.

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