Hillas (1990) introduced a definition of strategic stability based on perturbations of the best reply correspondence that satisfies all of the requirements given by Kohlberg and Mertens (1986). Hillas et al. (2001) point out though that the proofs of the iterated dominance and forward induction...

In this article, we consider how important developments in game theory have contributed to the theory of industrial organization.

We consider parameterized collections of games without side payments and determine a bound on epsilon so that all sufficiently large games in the collection have non-empty epsilon-cores. The required size of epsilon depends on: (a)the number of approximate player types and the accuracy of this...

In experiments with two-person sequential games we analyze whether responses to favorable and unfavorable actions depend on the elicitation procedure. In our "hot" treatment the second player responds to the first player's observed action while in our "cold" treatment we follow the "strategy...