A Limit Theorem for Equilibria under Ambiguous Beliefs Correspondences
AbstractPrevious literature shows that, in many different models, limits of equilibria of perturbed games are equilibria of the unperturbed game when the sequence of perturbed games converges to the unperturbed one in an appropriate sense. The question whether such limit property extends to the equilibrium notions in ambiguous games is not yet clear as it seems; in fact, previous literature shows that the extension fails in simple examples. The contribution in this paper is to show that the limit property holds for equilibria under ambiguous beliefs correspondences (presented by the authors in a previous paper). Key for our result is the sequential convergence assumption imposed on the sequence of beliefs correspondences. Counterexamples show why this assumption cannot be removed.
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Bibliographic InfoPaper provided by Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy in its series CSEF Working Papers with number 299.
Date of creation: 28 Nov 2011
Date of revision:
Publication status: Published in Mathematical Social Sciences, 2013, Vol. 66(3), pp. 431–438
Ambiguous games; beliefs correspondences; limit equilibria;
Other versions of this item:
- De Marco, Giuseppe & Romaniello, Maria, 2013. "A limit theorem for equilibria under ambiguous belief correspondences," Mathematical Social Sciences, Elsevier, vol. 66(3), pages 431-438.
- NEP-ALL-2011-12-13 (All new papers)
- NEP-GTH-2011-12-13 (Game Theory)
- NEP-MIC-2011-12-13 (Microeconomics)
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