Article ID Journal Published Year Pages File Type
956636 Journal of Economic Theory 2014 18 Pages PDF
Abstract

In Poisson games, an extension of perfect equilibrium based on perturbations of the strategy space does not guarantee that players use admissible actions. This observation suggests that such a class of perturbations is not the correct one. We characterize the right space of perturbations to define perfect equilibrium in Poisson games. Furthermore, we use such a space to define the corresponding strategically stable sets of equilibria. We show that they satisfy existence, admissibility, and robustness against iterated deletion of dominated strategies and inferior replies.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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