Three axioms from decision theory are applied to refinements that select connected subsets of the Nash equilibria of games with perfect recall. The first axiom requires all equilibria in a selected subset to be admissible, i.e. each player's strategy is an admissible optimal reply to other...

Three axioms from decision theory select sets of Nash equilibria of signaling games in extensive form with generic payoffs. The axioms require undominated strategies (admissibility), inclusion of a sequential equilibrium (backward induction), and dependence only on the game's normal form even...

From a variant of Kuhn's triangulation we derive a discrete version of the Global Newton Method that yields an epsilon-equilibrium of an N-player game and then sequentially reduces epsilon toward zero to obtain any desired precision or the best precision for any number of iterations

amp;#65279;An N-player game can be approximated by adding a coordinator who interacts bilaterally with each player. The coordinator proposes strategies to the players, and his payoff is maximized when each player's optimal reply agrees with his proposal. When the feasible set of proposals is finite,...

This article characterizes a supply function equilibrium in an auction market constrained by limited capacities of links in a transportation network and limited input/output capacities of participants. The formulation is adapted to a wholesale spot market for electricity managed by the operator...

We define a refinement of Nash equilibria called metastability. This refinement supposes that the given game might be embedded within any global game that leaves its local bestreply correspondence unaffected. A selected set of equilibria is metastable if it is robust against perturbations of...

Mertens' (1989) definition of stability for a game in strategic form is applied to a game in extensive form with perfect recall. If payoffs are generic then the outcomes of stable sets of equilibria defined via homological essentiality by Mertens coincide with those defined via homotopic...

We study an economy with traders whose payoffs are quasilinear and their private signals are informative about an unobserved state parameter. The limit economy has infinitely many traders partitioned into a finite set of symmetry classes called types. It has a unique rational expectations...

We posit a standard model of an asymmetric double auction with interdependent values in which each trader observes a private signal about a hidden state before submitting a bid or ask price for a unit demand or supply. The state and signals are one-dimensional, traders’ signals are independent...

A player's pure strategy is called relevant for an outcome of a game in extensive form with perfect recall if there exists a weakly sequential equilibrium with that outcome for which the strategy is an optimal reply at every information set it does not exclude. The outcome satisfies forward...