We identify a class of discontinuous normal-form games whose members possess strategically stable sets, defined according to an infinite-game extension of Kohlberg and Mertens’s (1986) equilibrium concept, and show that, generically, a set is stable if and only if it contains a single Nash...

We provide approximation results for Nash equilibria in possibly discontinuous games when payoffs and strategy sets are perturbed. We then prove existence results for a new “finitistic” infinite-game generalization of Selten’s (Int J Game Theory 4: 25–55, <CitationRef CitationID="CR23">1975</CitationRef>) notion of perfection and...</citationref>

We explore the consequences of electoral competition for nonlinear income taxation. Our model is a dynamic version of the standard two-party electoral competition model adapted to nonlinear income taxation. The theory has a number of desirable features. First, equilibria always exist, even...

The theory of incomplete contracting is rival to that of complete contracting as a frame of reference to understand contractual relationships. Both approaches rest upon diametrically opposed postulates and lead to very different policy conclusions. From a theoretical viewpoint, scrutiny of the...

A Nash equilibrium x of a normal-form game G is essential if any perturbation of G has an equilibrium close to x. Using payoff perturbations, we show that for games that are generic in the set of compact, quasiconcave, and generalized payoff secure games with upper semicontinuous sum of payoffs,...

We prove the existence of a trembling-hand perfect equilibrium within a class of compact, metric, and possibly discontinuous games. Our conditions for existence are easily verified in a variety of economic games.