How Proper is the Dominance-Solvable Outcome?
15 Pages Posted: 15 Jul 2015
Date Written: July 14, 2015
We prove that any normal-form game that is dominance solvable by weak dominance and that satisfies the transference of decision-maker indifference condition (TDI* of Marx and Swinkels ) has a finite number of equilibrium outcomes. This implies that the unique outcome of dominance solvability in these games must coincide with the payoff of a proper equilibrium. We then apply our theorems to both generic outcome-form games and voting games.
Keywords: Weak dominance, Iterated elimination, Proper equilibrium
JEL Classification: C7, C72
Suggested Citation: Suggested Citation