Strategic Stability in Poisson Games

Economics

Speaker:Carlos Pimienta, UNSW, Australian School of Business
Date: Friday 7 February 2014
Time: 16.15 - 17.45
Location: Streatham Court B

Further details

In Poisson games, an extension of perfect equilibrium based on perturbations of the strategy space does not guarantee that players use admissible actions. This observation suggests that such a class of perturbations is not the correct one. We introduce a new space of perturbations to introduce a definition of perfectness for Poisson games that implies admissibility. Furthermore, we use such a space to define the corresponding strategically stable sets of equilibria. We show that they satisfy existence, admissibility, and iterated deletion of dominated strategies and inferior replies.