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Generalized Potentials and Robust Sets of Equilibria

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  • smorris
  • Takashi Ui

Abstract

This paper introduces generalized potential functions of complete information games and studies the robustness of sets of equilibria to incomplete information. A set of equilibria of a complete information game is robust if every incomplete information game where payoffs are almost always given by the complete information game has an equilibrium which generates behavior close to some equilibrium in the set. First, this paper provides sufficient conditions for the robustness of sets of equilibria in terms of argmax sets of generalized potential functions. Next, it shows that the sufficient conditions generalize the existing sufficient conditions for the robustness of equilibria

Suggested Citation

  • smorris & Takashi Ui, 2004. "Generalized Potentials and Robust Sets of Equilibria," Econometric Society 2004 North American Winter Meetings 45, Econometric Society.
    • Handle: RePEc:ecm:nawm04:45
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    References listed on IDEAS

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    More about this item

    Keywords

    potential functions; equilibrium selection; robustness;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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