One world mathematical game theory seminar

Best-Response Equilibrium: An Equilibrium in Finitely Additive Mixed Strategies

Event starts: 18/10/2021 3:00 pm

Abstract

A generalization of mixed strategy equilibrium is proposed, where mixed strategies need only be finitely additive and payoff functions are not required to be integrable or bounded. It is based on an extension of the idea that an equilibrium strategy is supported in the player’s set of best-response actions, but is applicable also when no best-response actions exist. The proposed notion of best-response equilibrium yields simple, natural mixed equilibria in a number of well-known games where other kinds of mixed equilibrium are complicated or not compelling or they do not exist.