UC San Diego
Iterated weak dominance and interval-dominance supermodular games
- Author(s): Sobel, Joel
- et al.
Published Web Locationhttps://doi.org/10.3982/TE2904
This paper extends Milgrom and Robert's treatment of supermodular games in two ways. It points out that their main characterization result holds under a weaker assumption. It refines the arguments to provide bounds on the set of strategies that survive iterated deletion of weakly dominated strategies. I derive the bounds by iterating the best-response correspondence. I give conditions under which they are independent of the order of deletion of dominated strategies. The results have implications for equilibrium selection and dynamic stability in games.