Subgame perfect equilibria in stopping games (Q2248908): Difference between revisions

A stopping game is considered wherein a random process chooses a player at each time from a finite set of players to play the game. The player can stop the game or continue, in former case a payoff is received by all players. Non-termination is possible. For given \(\delta\), \(\varepsilon > 0\), a \(\delta\)-approximate subgame perfect \(\varepsilon\)-equilibrium is defined as a strategy profile which is a subgame perfect \(\varepsilon\)-equilibrium except in subgames of probability not exceeding \(\delta\). The main result is an existence theorem thereof under some technical condition on the payoffs. The proof proceeds via analysis of simpler games and a stochastic version of Ramsey's theorem.