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Individual upper semicontinuity and subgame perfect ϵ-equilibria in games with almost perfect information

Author

Listed:
  • Flesch, Janos

    (RS: GSBE Theme Conflict & Cooperation, QE Math. Economics & Game Theory)

  • Herings, P. Jean-Jacques

    (RS: GSBE Theme Data-Driven Decision-Making, RS: GSBE Theme Conflict & Cooperation, Microeconomics & Public Economics)

  • Maes, Jasmine

    (RS: GSBE Theme Conflict & Cooperation, Microeconomics & Public Economics)

  • Predtetchinski, Arkadi

    (RS: GSBE Theme Conflict & Cooperation, Microeconomics & Public Economics)

Abstract

We study games with almost perfect information and an infinite time horizon. In such games, at each stage, the players simultaneously choose actions from finite action sets, knowing the actions chosen at all previous stages. The payoff of each player is a function of all actions chosen during the game. We define and examine the new condition of individual upper semicontinuity on the payoff functions, which is weaker than upper semicontinuity. We prove that a game with individual upper semicontinuous payoff functions admits a subgame perfect ϵ-equilibrium for every ϵ > 0, in eventually pure strategy profiles.

Suggested Citation

  • Flesch, Janos & Herings, P. Jean-Jacques & Maes, Jasmine & Predtetchinski, Arkadi, 2019. "Individual upper semicontinuity and subgame perfect ϵ-equilibria in games with almost perfect information," Research Memorandum 002, Maastricht University, Graduate School of Business and Economics (GSBE).
    • Handle: RePEc:unm:umagsb:2019002
    DOI: 10.26481/umagsb.2019002
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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