Oyama, Daisuke and Tercieux, Olivier (2004): Iterated Potential and Robustness of Equilibria.
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For any given set-valued solution concept, it is possible to consider iterative elimination of actions outside the solution set. This paper applies such a procedure to define the concept of iterated monotone potential maximizer (iterated MP-maximizer). It is shown that under some monotonicity conditions, an iterated MP-maximizer is robust to incomplete information (Kajii and Morris, Econometrica 65 (1997)) and absorbing and globally accessible under perfect foresight dynamics for a small friction (Matsui and Matsuyama, Journal of Economic Theory 65 (1995)). Several simple sufficient conditions under which a game has an iterated MP-maximizer are also provided.
|Item Type:||MPRA Paper|
|Original Title:||Iterated Potential and Robustness of Equilibria|
|Keywords:||equilibrium selection; robustness; incomplete information; perfect foresight dynamics; iteration; monotone potential; p-dominance|
|Subjects:||C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C72 - Noncooperative Games
D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information; Mechanism Design
C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C73 - Stochastic and Dynamic Games; Evolutionary Games; Repeated Games
|Depositing User:||Daisuke Oyama|
|Date Deposited:||27. Mar 2009 14:05|
|Last Modified:||21. Feb 2013 16:48|
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Iterated Potential and Robustness of Equilibria. (deposited 30. Jan 2007)
- Iterated Potential and Robustness of Equilibria. (deposited 27. Mar 2009 14:05) [Currently Displayed]