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Strategic Stability in Poisson Games

Author

Listed:
  • Francesco De Sinopoli

    (Department of Economics, University of Verona)

  • Claudia Meroni

    (Department of Economics, University of Milano-Bicocca)

  • Carlos Pimienta

    (School of Economics, Australian School of Business, the University of New South Wales)

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.

Suggested Citation

  • Francesco De Sinopoli & Claudia Meroni & Carlos Pimienta, 2014. "Strategic Stability in Poisson Games," Discussion Papers 2014-09, School of Economics, The University of New South Wales.
    • Handle: RePEc:swe:wpaper:2014-09
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    File URL: http://research.economics.unsw.edu.au/RePEc/papers/2014-09.pdf
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    Cited by:

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    4. Francesco De Sinopoli & Leo Ferraris & Claudia Meroni, 2024. "Group size as selection device," Working Papers 533, University of Milano-Bicocca, Department of Economics.
    5. Pierre Bernhard & Marc Deschamps, 2021. "Dynamic Equilibrium with Randomly Arriving Players," Dynamic Games and Applications, Springer, vol. 11(2), pages 242-269, June.

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    More about this item

    Keywords

    Poisson games; voting; perfect equilibrium; strategic stability; stable sets;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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