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Talk:Proper equilibrium

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Latest comment: 18 years ago by Entorian

I think the example is not optimally chosen. In the case that player two makes a mistake and does not grab the penny, we are in the ordinary symmetrical matching penny game. But the crucial feature of the properness concept compared to the trembling hand concept is that the probability of a mistake is determined by the relative loss caused by making that mistake (relative to the losses caused by making other possible mistakes.) In a a symmetrical game, the properness concept does not demand different probabilities for the mistakes, because every mistake incurs the same cost. We should give an example in which the properness concept demands assigning different probabilities to different mistakes because the mistakes are differently costly. Florian Biermann —Preceding unsigned comment added by Entorian (talkcontribs) 16:37, 16 February 2008 (UTC)Reply

Bromille 09:18, 26 March 2007 (UTC)Reply