\(\epsilon\)-consistent equilibrium in repeated games. (English) Zbl 1058.91514
Summary: We introduce the concept of \(varepsilon\)-consistent equilibrium where each player plays a \(varepsilon\)-best response after every history reached with positive probability. In particular, an \(varepsilon\)-consistent equilibrium induces an \(varepsilon\)-equilibrium in any subgame reached along the play path. The existence of \(varepsilon\)-consistent equilibrium is examined in various repeated games. The main result is the existence in stochastic games with absorbing states.
MSC:
91A20 | Multistage and repeated games |
91A06 | \(n\)-person games, \(n>2\) |
91B50 | General equilibrium theory |