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.