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Discussion Paper

The Equivalence of the Dekel-Fudenberg Iterative Procedure and Weakly Perfect Rationalizability

Two approaches have been proposed in the literature to refine the rationalizability solution concept: either assuming that players make small errors when playing their strategies, or assuming that their is a small amount of payoff uncertainty. We show that both approaches lead to the same refinement if errors are made according to the concept of weakly perfect rationalizability, and there is payoff uncertainty as in Dekel and Fudenberg [Journal of Economic Theory (1990), 52: 243–267].