Contemporaneous Perfect Epsilon-Equilibria, Second Version
17 Pages Posted: 19 Aug 2003
Date Written: August 15, 2003
Abstract
We examine contemporaneous perfect E-equilibria, in which a player's actions after every history, evaluated at the point of deviation from the equilibrium, must be within of a best E response. This concept implies, but is stronger than, Radner's ex ante perfect E-equilibrium. A strategy profile is a contemporaneous perfect E-equilibrium of a game if it is a subgame perfect equilibrium in a perturbed game with nearly the same payoffs, with the converse holding for pure equilibria.
Keywords: Epsilon Equilibrium, Ex Ante Payoff, Multistage Game, Subgame Perfect Equilibrium
JEL Classification: C70, C72, C73
Suggested Citation: Suggested Citation
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