Forward Induction, Public Randomization, and Admissibility
Abstract Gul and Pearce argue that forward induction has much less power as an equilibrium refinement than is generally supposed. The present comment raises the issue: What does admissibility imply for Gul and Pearce's analysis? In a key example, the precise equilibrium constructed by Gul and Pearce depends on a strategy which is not admissible. Even if all equilibria are considered, it is not possible to preserve the Gul and Pearce results under admissibility. Journal of Economic Literature Classification Number: C72.