Template-type: ReDif-Paper 1.0
Author-Name: Herings, P.J.J.
Author-workplace-name: Microeconomics & Public Economics
Author-Name: Predtetchinski, A.
Author-workplace-name: Microeconomics & Public Economics
Title: Best response cycles in perfect information games
Abstract: We consider n-player perfect information games with payofffunctions having a finite image. We do not make any further assumptions, so in particular we refrain from making assumptions on the cardinality or the topology of the set of actions and assumptions like continuity or measurability of payofffunctions. We show that there exists a best response cycle of length four, that is, a sequence (σ0, σ1, σ2, σ3, σ0) of pure strategy profiles where every successive element is a best response to the previous one. This result implies the existence of point-rationalizable strategy profiles. When payoffs are only required to be bounded, we show the existence of an ϵ-best response cycle of length four for every ϵ > 0.
Series: GSBE Research Memoranda
Creation-Date: 20150101
Number: 017
File-URL: https://cris.maastrichtuniversity.nl/ws/files/1241729/guid-8e254bc2-380c-4ebd-a3d7-e69835e9bd3e-ASSET1.0.pdf
File-Format: application/pdf
File-Size: 442399
Handle: Repec:unm:umagsb:2015017
DOI: 10.26481/umagsb.2015017