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Strategic stability of equilibria: the missing paragraph

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  • GRIGIS DE STEFANO, Federico

    (Université catholique de Louvain, CORE, Belgium)

Abstract

This paper introduces two set valued Nash equilibrium refinements that are a natural generalization of the concept of stable set of equilibria introduced in Kohlberg and Mertens (1986) and satisfy all the properties defined in Mertens (1989). It also establishes a connection between Nash equilibrium refinements and stochastic games as a tool to define a stable set of equilibria.

Suggested Citation

  • GRIGIS DE STEFANO, Federico, 2014. "Strategic stability of equilibria: the missing paragraph," LIDAM Discussion Papers CORE 2014015, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvco:2014015
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    File URL: https://sites.uclouvain.be/core/publications/coredp/coredp2014.html
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    References listed on IDEAS

    as
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    2. Mertens, Jean-Francois, 1992. "The small worlds axiom for stable equilibria," Games and Economic Behavior, Elsevier, vol. 4(4), pages 553-564, October.
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    4. Jean-François Mertens, 1989. "Stable Equilibria---A Reformulation," Mathematics of Operations Research, INFORMS, vol. 14(4), pages 575-625, November.
    5. Mailath, George J & Samuelson, Larry & Swinkels, Jeroen M, 1993. "Extensive Form Reasoning in Normal Form Games," Econometrica, Econometric Society, vol. 61(2), pages 273-302, March.
    6. VARDAR, N. Baris, 2013. "Imperfect resource substitution and optimal transition to clean technologies," LIDAM Discussion Papers CORE 2013072, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    14. VAN DIJCK, Maarten & TRUYTS, Tom, 2014. "The agricultural invasion and the political economy of agricultural trade policy in Belgium, 1875-1900," LIDAM Discussion Papers CORE 2014002, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    15. MERTENS, Jean-François, 1991. "Stable equilibria - a reformulation. Part II. Discussion of the definition, and further results," LIDAM Reprints CORE 960, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    More about this item

    Keywords

    game theory; equilibrium refinements; strategic stability; stochastic games;
    All these keywords.

    JEL classification:

    • A23 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Graduate
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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