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\(\epsilon\)-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
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