Approximation results for discontinuous games with an application to equilibrium refinement |
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Authors: | Oriol Carbonell-Nicolau Richard P. McLean |
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Affiliation: | 1. Department of Economics, Rutgers University, 75 Hamilton Street, New Brunswick, NJ, 08901, USA
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Abstract: | We provide approximation results for Nash equilibria in possibly discontinuous games when payoffs and strategy sets are perturbed. We then prove existence results for a new “finitistic” infinite-game generalization of Selten’s (Int J Game Theory 4: 25–55, 1975) notion of perfection and study some of its properties. The existence results, which rely on the approximation theorems, relate existing notions of perfection to the new specification. |
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