Strong Forward Induction

31 Pages Posted: 14 Feb 2011 Last revised: 27 Sep 2016

See all articles by Bingyong Zheng

Bingyong Zheng

Shanghai University of Finance and Economics - School of Economics

Date Written: February 13, 2011


Forward induction, as defined by Govindan and Wilson (2009), places a local dominance condition on off-equilibrium path beliefs restricting relevant strategies for an equilibrium outcome to be infinitely more likely than irrelevant ones. Meanwhile, it places no global dominance restrictions and thus leaves open the possibility that a dominated strategy is deemed more likely than strategies dominating it. This paper defines strong forward induction that improves upon forward induction by placing a global dominance condition on the lexicographical beliefs in addition to the local dominance condition. In some games strong forward induction can eliminate implausible outcomes that forward induction and an iterative procedure based on it fail to eliminate.

Keywords: forward induction, lexicographical belief system, equilibrium refinement

JEL Classification: C72

Suggested Citation

Zheng, Bingyong, Strong Forward Induction (February 13, 2011). Available at SSRN: or

Bingyong Zheng (Contact Author)

Shanghai University of Finance and Economics - School of Economics ( email )

Shanghai, 200433
86-21-6590-3124 (Phone)

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