In a self-confirming equilibrium, each player correctly forecasts the actions that opponents will take along the equilibrium path, but may be mistaken about the way that opponents would respond to deviations. Intuitively, this equilibrium concept models the possible steady states of a learning...

In this paper and its companion, we develop the concept of Markov strategy and Markov equilibrium for general multi-period games. Markov strategies are simple, i.e., they depend only on variables affecting current and future payoffs. By excluding the influence of all but the "important"...