Generalized potentials and robust sets of equilibria

Stephen Morris, Takashi Ui

Research output: Contribution to journalArticle

42 Scopus citations

Abstract

This paper introduces generalized potential functions of complete information games and studies the robustness of sets of equilibria to incomplete information. A set of equilibria of a complete information game is robust if every incomplete information game where payoffs are almost always given by the complete information game has an equilibrium which generates behavior close to some equilibrium in the set. This paper provides sufficient conditions for the robustness of sets of equilibria in terms of argmax sets of generalized potential functions. These sufficient conditions unify and generalize existing sufficient conditions. Our generalization of potential games is useful in other game theoretic problems where potential methods have been applied.

Original languageEnglish (US)
Pages (from-to)45-78
Number of pages34
JournalJournal of Economic Theory
Volume124
Issue number1
DOIs
StatePublished - Sep 2005

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics

Keywords

  • Incomplete information
  • Potential
  • Refinements
  • Robustness

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