| Article ID: | iaor20041117 |
| Country: | United States |
| Volume: | 21 |
| Issue: | 4 |
| Start Page Number: | 991 |
| End Page Number: | 999 |
| Publication Date: | Nov 1996 |
| Journal: | Mathematics of Operations Research |
| Authors: | Govindan S. |
| Keywords: | sets |
Stable sets project onto stable sets of subgames in the following sense: stable sets consist of normal form perfect equilibria; of any given ε, we could therefore look at the set of strategy profiles in a subgame that are induced by the set of ε-perfect equilibria in a neighbourhood of a stable set. Now take the limit, as ε goes to zero, of the closures of these sets. It is shown that the set so obtained contains a stable set of the subgame.