An extensive game as a guide for solving a normal game

We show that fur solvable games, the calculation of the strategies which survive iterative elimination of dominated strategies ill normal games is equivalent to the calculation of the backward induction outcome of some extensive game. However, whereas the normal Same form does nor provide information an how to cam out the elimination, the corresponding extensive game dots. As a by-product, we conclude that implementation using a subgame perfect equilibrium of an extensive Same with perfect information is equivalent to implementation through a solution concept which we call guided iteratively elimination of dominated strategies which requires a uniform order of elimination. Journal nai of Economic Literature Classification Number: C72. (C) 1996 Academic Press. Inc.