The theory of extensive games is built upon a key notion, that of sequential rationality, and a key insight, the centrality of off-equilibrium beliefs. The definition of sequential equilibrium brings both to the fore in a straightforward manner, and emphasizes their interrelation. From subgame perfection to sequential rationality
Marciano Siniscalchi October 28, 1999 Introduction [Again, by and large, I will follow OR, Chap. 8, so will keep these notes to a minimum.] Review of key definitions Recall our three payoff aggregation criteria: discounting, i.e
