Asymptotic Behavior and Selection of Subgame Perfect Nash Equilibria in Stackelberg Games
Abstract: The study on how equilibria behave when perturbations occur in the data of a game is a fundamental theme, since actions and payoffs of the players may be affected by uncertainty or trembles. In this presentation we investigate the asymptotic behavior of the subgame perfect Nash equilibrium (SPNE) and of the SPNE outcomes in one-leader one-follower Stackelberg games under perturbations both of the action sets and of the payoff functions. The investigation allows also to define selection methods for SPNEs that can accommodate various behaviors of the players. More precisely, we show that perturbations relying on a Tikhonov regularization, on an adverse-to-move behaviour and on an altruistic behaviour can produce specific selection results associated to such perturbations.
(with Francesco Caruso and Jacqueline Morgan)
