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Convex Approximation of Bounded Rational Equilibria

Author

Listed:
  • Yusuke Miyazaki

    (SUR Co., Ltd)

  • Hiromi Azuma

    (Accenture Japan Ltd)

Abstract

In this paper, we consider the existence of a sequence of convex sets that has an approximation property for the equilibrium sets in the bounded rational environments. We show that the bounded rational equilibrium multivalued map is approximated with arbitrary precision in the abstract framework, a parameterized class of "general games" together with an associated abstract rationality function that is established by Anderlini and Canning (2001). As an application, we show that the existence of a selection for some bounded rational equilibria on a discontinuous region P when P is a perfect set.

Suggested Citation

  • Yusuke Miyazaki & Hiromi Azuma, 2011. "Convex Approximation of Bounded Rational Equilibria," Economics Bulletin, AccessEcon, vol. 31(4), pages 2869-2874.
    • Handle: RePEc:ebl:ecbull:eb-11-00388
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    References listed on IDEAS

    as
    1. Anderlini, Luca & Canning, David, 2001. "Structural Stability Implies Robustness to Bounded Rationality," Journal of Economic Theory, Elsevier, vol. 101(2), pages 395-422, December.
    2. Yu, Jian, 1999. "Essential equilibria of n-person noncooperative games," Journal of Mathematical Economics, Elsevier, vol. 31(3), pages 361-372, April.
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    Cited by:

    1. Miyazaki, Yusuke & Azuma, Hiromi, 2013. "(λ,ϵ)-stable model and essential equilibria," Mathematical Social Sciences, Elsevier, vol. 65(2), pages 85-91.

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    More about this item

    Keywords

    Convex Approximation; Bounded Rational Equilibria; Selection;
    All these keywords.

    JEL classification:

    • C0 - Mathematical and Quantitative Methods - - General
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling

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