Duplication499

LectureNotesinEconomicsandMathematicalSystemsFoundingEditors:M.
BeckmannH.
P.
KiinziManagingEditors:Prof.
Dr.
G.
FandelFachbereichWirtschaftswissenschaftenFemuniversitatHagenFeithstr.
140lAVZ11.
58084Hagen,GermanyProf.
Dr.
W.
TrockelInstitutfilrMathematischeWirtschaftsforschung(IMW)UniversitatBielefeldUniversitatsstr.
25,33615Bielefeld,GermanyCo-Editors:C.
D.
Aliprantis,DanKovenockEditorialBoard:P.
Bardsley,A.
Basile,M.
R.
Baye,T.
Cason,R.
Deneckere,A.
Drexl,499G.
Feichtinger,M.
Florenzano,W.
Giith,K.
Inderfurth,M.
Kaneko,P.
Korhonen,W.
Kiirsten,M.
LiCalzi,P.
K.
Monteiro,Ch.
Noussair,G.
Philips,U.
Schittko,P.
Schonfeld,R.
Selten,G.
Sorger,R.
Steuer,F.
Vega-Redondo,A.
P.
Villamil,M.
WoodersSpringerBerlinHeidelbergNewYorkBarcelonaHongKongLondonMilanParisSingaporeTokyoAndreCasajusFocalPointsinFramedGamesBreakingtheSymmetrySpringerAuthorAndreCasajusUniversitatHohenheimInstitutfUrAgrarpolitikundlandwirtschaftlicheMarktlehre70593Stuttgart,GermanyCataloging-in-PublicationdataappliedforDieDeutscheBibliothek-CIP-EinheitsaufnahmeCasajus,Andre:Focalpointsinframedgames:breakingthesymmetry/AndreCasajus.
-Berlin;Heidelberg;NewYork;Barcelona;HongKong;London;Milan;Paris;Singapore;Tokyo:Springer,2001(Lecturenotesineconomicsandmathematicalsystems;499)ISBN978-3-540-41406-3ISBN978-3-642-51112-7(e8ook)DOI10.
1007/978-3-642-51112-7ISSN0075-8450Thisworkissubjecttocopyright.
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Springer-VerlagBerlinHeidelbergNewYorkamemberofBertelsmannSpringerScience+BusinessMediaGmbHSpringer-VerlagBerlinHeidelberg2001Softcoverreprintofthehardcover1stedition2001Theuseofgeneraldescriptivenames,registerednames,trademarks,etc.
inthispublicationdoesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfromtherelevantprotectivelawsandregulationsandthereforefreeforgeneraluse.
Typesetting:CamerareadybyauthorPrintedonacid-freepaperSPIN:1079140955/3142/du5432I0FUrmeineElternAcknowledgmentsThisbookwasacceptedasdoctoraldissertationbytheFacultyofEconomics(WirtschajtswissenschajtlicheFakultiit)oftheUniversityofLeipzig.
DuringmytimeinLeipzig,Ireceivedvariouskindsofsupportindevelopingtheideassetforthinthisbook.
Firstofall,IwouldliketothankHaraldWiese,myprincipaladvisor,forhispermanentencouragementandalotofhelpfuldiscussionsonthesubject.
IalsobenefittedfromdiscussionswithArnisVilks(LeipzigGraduateSchoolofManagement)andThomasVoss(InstituteofSociology)andwithmycolleaguesDirkBultel,MichaelGeisler,MatthiasMaul,andMarkusWimmer.
Earlypapersunderlyingthisbookwerepresentedatthe1rohArneRydeSymposium(August21-22,1997,Lund,Sweden)andthe3rdSpanishMeet-ingonGameTheoryandApplications(June15-17,1998,Barcelona,Spain).
Iextendmythankstotheparticipantsofbothconferencesfortheircriticalcomments.
Chapter2isbasedonmypaper"FocalPointsinFramedStrate-gicForms"(GamesandEconomicBehavior32,2000:263-291).
Ithankananonymousrefereeforvaluablesuggestionswhichconsiderablyimprovedboththepaperandthechapter.
ThelaststepsoffinishingmydissertationweremadeattheUniversityofHohenheimwhereIalsopreparedthemanuscript.
ManythankstoTilmanBeckerwhogenerouslypermittedmetospentenoughtimeonthisproject.
ThanksalsotomycolleaguesinHohenheimwhohelpedmetosettledownthatfarfrommybelovedLeipzig.
Lastbutnotleast,IamindebtedtomyformerwifeIsabelwhopatientlyattendedthisendeavorforquitealongtime.
Hohenheim,September2000AndreCasajusContents1.
Introduction.
11.
1StaticFocalPoints11.
1.
1Coordination.
11.
1.
2Bargaining.
41.
2DynamicFocalPoints.
61.
3Outline.
72.
StaticFocalPointsinFramedStrategicGames92.
1Introduction.
92.
2Examples.
102.
3HarsanyiandSelten'sSymmetryInvarianceRequirement.
.
.
.
132.
3.
1Introduction.
132.
3.
2StrategicGames.
142.
3.
3SolutionConcepts.
152.
3.
4InvariancewithRespecttoIsomorphisms.
162.
3.
5SymmetryInvariance192.
4RationalizingStaticFocalPoints242.
4.
1RationalizingtheChoiceofaSalientOption242.
4.
2TheVariableFrameTheoryofFocalPoints.
262.
4.
3Sugden'sLabelling342.
4.
4ThePrincipleofCoordination.
362.
5FramedStrategicGames(FSGs)382.
5.
1Frames.
382.
5.
2LanguageInvariance412.
5.
3SymmetryInvariance432.
5.
4MeaningandStructureofLabels-anExtraterrestri-al'sPerspective452.
5.
5SeparatingFSGs462.
5.
6Applications.
482.
6FocalPointsinFSGRepresentationsofVUMGs.
512.
6.
1FSGRepresentationsofVUMGs522.
6.
2AnExample.
522.
6.
3ReductionofFSGsandFocalPointsinVUMGs.
53XContents3.
WeakIsomorphismsofExtensiveGames.
553.
1Introduction.
553.
2FiniteExtensiveGameswithPerfectRecall.
583.
2.
1Definition.
583.
2.
2PerfectRecall.
613.
2.
3Strategies.
633.
2.
4Subgames.
643.
2.
5SolutionConcepts653.
3InvariancewithRespecttoWeakIsomorphisms673.
3.
1WeakIsomorphismsofExtensiveGames673.
3.
2WeakIsomorphismInvariance.
733.
3.
3WeakSymmetryInvariance.
743.
3.
4TheOrderofActions753.
4StrongIsomorphismsofExtensiveGames.
833.
5TraditionalExtensiveRepresentationsofStrategicGames.
.
.
863.
5.
1Definition.
863.
5.
2SymmetryinTraditionalRepresentationsofStrategicGames873.
6Conclusion.
894.
DynamicFocalPointsinFramedExtensiveGames.
.
.
.
.
.
.
914.
1Introduction.
914.
2Examples.
934.
2.
1Crawford&Haller'sRuleforRepeatedMatchingGames934.
2.
2ConsciousProductionofaDescription.
944.
3ModellingDynamicFocalPoints954.
3.
1ExtensiveGames.
954.
3.
2ExtensiveGameswithHistory974.
3.
3FramedStrategicGames-AdhocApproach1004.
3.
4FramedStrategicGames-GeneralApproach1014.
4FramedExtensiveGames(FEGs)1074.
4.
1Frames.
1074.
4.
2WeakIsomorphismsofFEGsandLanguageInvariance1084.
4.
3WeakSymmetriesofFEGs1094.
5ModellingDynamicFocalPointsbyFEGs1094.
5.
1Crawford&Haller'sRule1094.
5.
2ConsciousProductionofaDescription1114.
5.
3HistoryLabelledAgentNormalForms1125.
Conclusion.
1155.
1StaticFocalPointsinFramedStrategicGames1155.
2WeakIsomorphismsofExtensiveGames1165.
3DynamicFocalPointsinFramedExtensiveGames1185.
4Perspective118ContentsXIListofSymbolsandAbbreviations121ListofFigures127Bibliography129