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We present a new proof of the interiority of the policy function based on the Inada conditions. It is based on supporting properties of concave functions.
Persistent link: https://www.econbiz.de/10005296723
In 1975 Selten introduced trembling-hand perfection, however it was implicitly assumed that specific values of rationality imperfections are common knowledge. Relaxing this assumption, we develop the notion of trembling-hand myopia, and completely characterize equilibria which are robust in this...
Persistent link: https://www.econbiz.de/10009275171
We present some proofs of the existence of the minimax point of a strategic game that does not seem to be available in the literature. The existence of the minimax point plays an important role in the theory of games.
Persistent link: https://www.econbiz.de/10008474031