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 [24] notion of perfection, and study some of its properties. The...

It is known that generic games within certain collections of infinite-action normal-form games have only essential equilibria. We point to a difficulty in showing that essential equilibria in generic games are (strictly) perfect, and we identify collections of games whose generic members have...

We present a common value mechanism design model for an informed principal where only the principal has private information, but her one-dimensional private information is allowed to be distributed according to any probability measure. For this model we characterize the set of pure-strategy...

We present a common value mechanism design model for an informed principal where only the principal has private information, but her one-dimensional private information is allowed to be distributed according to any probability measure. For this model we characterize the set of pure-strategy...

In our previous paper we built a general equilibrium model of default and punishment in which equilibrium always exists and endogenously determines asset promises, penalties, and sales constraints. In this paper we interpret the endogenous sales constraints as equilibrium signals. By...

We extend the standard model of general equilibrium with incomplete markets to allow for default and punishment. The equilibrating variables include expected delivery rates, along with the usual prices of assets and commodities. By reinterpreting the variables, our model encompasses a broad...

We build a model of competitive pooling and show how insurance contracts emerge in equilibrium, designed by the invisible hand of perfect competition. When pools are exclusive, we obtain a unique separating equilibrium. When pools are not exclusive but seniority is recognized, we obtain a...

The standard refinement criteria for extensive form games, including subgame perfect, perfect, perfect Bayesian, sequential, and proper, reject important classes of reasonable Nash equilibria and accept many unreasonable Nash equilibria. This paper develops a new refinement criterion, based on...