Epsilon-equilibria of perturbed games

B-Tier
Journal: Games and Economic Behavior
Year: 2012
Volume: 75
Issue: 1
Pages: 198-216

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We prove that for any equilibrium of a (Bayesian) game, and any sequence of perturbations of that game, there exists a corresponding sequence of ex-ante ε-equilibria converging to the given equilibrium of the original game. We strengthen the conclusion to show that the approaching equilibria are interim ε-equilibria (ε-best responses for almost all types) if beliefs in the perturbed games converge in a strong-enough sense to the limit beliefs. Therefore, equilibrium selection arguments that are based on perturbations to a game are not robust to slight perturbations in best reply behavior (or to underlying preferences). This applies to many standard equilibrium selections, including Seltenʼs (1975) definition of trembling-hand perfect equilibrium, Rubinsteinʼs (1989) analysis of the electronic mail game, and Carlsson and van Dammeʼs (1993) global games analysis, among others.

Technical Details

RePEc Handle
repec:eee:gamebe:v:75:y:2012:i:1:p:198-216
Journal Field
Theory
Author Count
3
Added to Database
2026-01-25