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On Games of Perfect Information: Equilibria, epsilon-Equilibria and Approximation by Simple Games

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  • Guilherme Carmona

Abstract

We show that every bounded, continuous at infinity game of perfect information has an epsilon-perfect equilibrium. Our method consists of approximating the payoff function of each player by a sequence of simple functions, and to consider the corresponding sequence of games, each differing form the original game only on the payoff function. In addition, this approach yields a new characterization of perfect equilibria: a strategy $f$ is a perfect equilibrium in such a game G if and only if it is an 1/n-perfect equilibrium in G_n for all n, where {G_n} stand for our approximation sequence.

Suggested Citation

  • Guilherme Carmona, 2004. "On Games of Perfect Information: Equilibria, epsilon-Equilibria and Approximation by Simple Games," Game Theory and Information 0402002, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpga:0402002
    Note: Type of Document - pdf; prepared on winxp; to print on general; pages: 20; figures: 0. none
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    References listed on IDEAS

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    More about this item

    Keywords

    Games with Perfect information; Perfect equilibrium;

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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