Klaus Ritzberger, One World Mathematical Game Theory Seminar, January 25

JANUARY 25, SOLID OUTCOMES IN FINITE GAMES

A new solution concept for finite games is presented and analyzed. It is defined in terms of outcomes—probability distributions over the plays of the game. Unlike strategy profiles, outcomes are empirically observable. Solid outcomes are robust to the representation of the game, whether in normal or extensive form, and are consistent with backwards induction. They are also unaffected by the removal or addition of dominated strategies. Solid outcomes exist for a generic class of extensive-form games. Solid outcomes have support in minimal “game blocks”, a class of product sets of pure-strategy profiles that are robust set-valued candidates for conventions and social norms in recurrent population play of the game.