A characterization of the perfect equilibria of infinite horizon games (Q1072945)

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A characterization of the perfect equilibria of infinite horizon games
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    A characterization of the perfect equilibria of infinite horizon games (English)
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    1985
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    The paper extends the ideas of \textit{D. Fudenberg} and \textit{D. Levine} [ibid. 31, 251-268 (1983; Zbl 0521.90106)] who have made the following observation: under some circumstances, in an infinite extensive game of n players \(\Gamma\), a sequence of players' strategies is a perfect equilibrium of \(\Gamma\) if and only if it is a limit of a sequence of \(\epsilon_ n\)-perfect equilibria of truncated games \(\Gamma_ n\) \((\Gamma_ n\) arises from \(\Gamma\) by truncating it after n steps), with \(\epsilon_ n\to 0\) while \(n\to \infty.\) The original concept of convergence w.r.t. a metric has been replaced in the paper under review by the convergence w.r.t. a ''weak'' and a ''strong'' topology in the set of all sequences of players' strategies, and w.r.t. any topology in between.
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    infinite horizon games
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    convergence of equilibria
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    limit strategies
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    limit equilibria
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    convergence with respect to a topology
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    infinite extensive game
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    perfect equilibrium
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    truncated games
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