Econometrica

Journal Of The Econometric Society

An International Society for the Advancement of Economic
Theory in its Relation to Statistics and Mathematics

Edited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262

Econometrica: Sep, 1993, Volume 61, Issue 5

Global Games and Equilibrium Selection

https://www.jstor.org/stable/2951491
p. 989-1018

Eric van Damme, Hans Carlsson

A global game is an incomplete information game where the actual payoff structure is determined by a random draw from a given class of games and where each player makes a noisy observation of the selected game. For $2 \times 2$ games, it is shown that, when the noise vanishes, iterated elimination of dominated strategies in the global game forces the players to conform to Harsanyi and Selten's risk dominance criterion.


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