Abstract

The paper presents an approach to selecting among the many subgame-perfect equilibria that exist in a standard concession game with complete information. We extend the description of a game to include a specific 'irrational' (mixed) strategy for each player. Depending on the irrational strategies chosen, we demonstrate that this approach may select a unique equilibrium in which the weaker player concedes immediately. A player is weaker either if he is more impatient or if his irrational strategy is to wait in any period with the higher..