The trembling chairman paradox (Q2078032)

This paper studies strategic voting, evaluating general equilibrium selection procedures. Effects of the admission of weakly dominated strategies are discussed. The concepts of iterated elimination of weakly dominated strategies IEWDS), trembling-hand perfect equilibrium and proper equilibrium are explored. It builds a chairman paradox without reference to IEWDS. The paradoxical equilibrium where the chairman receives her worst outcome is the only proper equilibrium. If instead of properness, one relies on trembling-hand perfection, besides the paradoxical equilibrium the equilibrium where the chairman gets her best outcome also survives.