Sunspot Equilibrium in General Quitting Games

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Abstract: We prove that positive recursive general quitting games, which are quitting games in which each player may have more than one continue action, admit a sunspot ep-equilibrium, for every ep>0. To this end we show that the equilibrium set of strategic-form games can be uniformly approximated by a smooth manifold, and develop a new fixed-point theorem for smooth manifolds.












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