Theoretical Economics

Journal of the Econometric Society

Edited by: Federico Echenique • ISSN (e): 1555-7561 • ISSN (print): 1933-6837

Theoretical Economics: Oct, 2014, Volume 9, Issue 3

Refinements of Nash equilibrium in potential games

https://doi.org/10.3982/TE1178
p. 555-582

Oriol Carbonell-Nicolau, Richard McLean

We prove the existence of a pure-strategy trembling-hand perfect equilibrium in upper semicontinuous potential games, and we show that generic potential games possess pure-strategy strictly perfect and essential equilibria. We also establish a more powerful result: the set of maximizers of an upper semicontinuous potential contains a strategically stable set of pure-strategy Nash equilibria.


Full Content