Roine, Jesper - Economics Institute for Research (SIR), … - 2003
trembles
Even though the above, for a very simple reason, predicts policy stability and that
parties have equal chances of …”. With this interpretation of trembles, it turns out that a local
equilibrium policy has the property of maximizing the … likelihood of winning in case
the opponent trembles, leading to it being a best initial choice for the incumbent.
To simplify the …