A Comparison of Cursed Sequential Equilibrium and Sequential Cursed Equilibrium: Different Concepts of Cursedness in Dynamic Games

Fuente: arXiv
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Autores principales: Fong, Meng-Jhang, Lin, Po-Hsuan, Palfrey, Thomas R.
Formato: Preprint
Publicado: 2023
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author Fong, Meng-Jhang
Lin, Po-Hsuan
Palfrey, Thomas R.
author_facet Fong, Meng-Jhang
Lin, Po-Hsuan
Palfrey, Thomas R.
contents Cursed Equilibrium of Eyster and Rabin (2005) has been a leading theory for explaining winner's-curse-type behavior in static Bayesian games, but it faces conceptual limitations when applied to dynamic games. Two recent extensions, Cursed Sequential Equilibrium (CSE) by Fong, Lin and Palfrey (2025) and Sequential Cursed Equilibrium (SCE) by Cohen and Li (2026), address these limitations in fundamentally different ways. Complementing these two papers, this paper provides a systematic comparison of CSE and SCE, clarifying their conceptual foundations and technical implications, including their notions of cursedness, belief updating, and treatment of public histories.
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id arxiv_https___arxiv_org_abs_2304_05515
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle A Comparison of Cursed Sequential Equilibrium and Sequential Cursed Equilibrium: Different Concepts of Cursedness in Dynamic Games
Fong, Meng-Jhang
Lin, Po-Hsuan
Palfrey, Thomas R.
Theoretical Economics
Cursed Equilibrium of Eyster and Rabin (2005) has been a leading theory for explaining winner's-curse-type behavior in static Bayesian games, but it faces conceptual limitations when applied to dynamic games. Two recent extensions, Cursed Sequential Equilibrium (CSE) by Fong, Lin and Palfrey (2025) and Sequential Cursed Equilibrium (SCE) by Cohen and Li (2026), address these limitations in fundamentally different ways. Complementing these two papers, this paper provides a systematic comparison of CSE and SCE, clarifying their conceptual foundations and technical implications, including their notions of cursedness, belief updating, and treatment of public histories.
title A Comparison of Cursed Sequential Equilibrium and Sequential Cursed Equilibrium: Different Concepts of Cursedness in Dynamic Games
topic Theoretical Economics
url https://arxiv.org/abs/2304.05515