Midlands State University Library

Existence of perfect equilibria: a direct proof

Topolyan, Iryna

Existence of perfect equilibria: a direct proof by Iryna Topolyan - Economic theory Volume 53, number 3 .

We provide a direct proof of the existence of perfect equilibria in finite normal form games and extensive games with perfect recall. It is done by constructing a correspondence whose fixed points are precisely the perfect equilibria of a given finite game. Existence of a fixed point is secured by a generalization of Kakutani theorem, which is proved in this paper. This work offers a new approach to perfect equilibria, which would hopefully facilitate further study on this topic. We also hope our direct proof would be the first step toward building an algorithm to find the set of all perfect equilibria of a strategic game.

0938-2259


Perfect equilibri

HB119 ECO