Perfect equilibrium histories of finite and infinite horizon games (Q1121187)

The paper deals with perfect equilibria in the n-person infinite multi- stage games. It is shown that an equilibrium can be approximated by a sequence of perfect \(\epsilon\)-equilibria in finite truncated games. Unlike to previous works [see, e.g., \textit{D. Fudenberg} and \textit{D. Levine}, J. Econ. Theory 31, 251-268 (1983; Zbl 0521.90106)], the approximation procedure is related to the study of equilibrium histories rather than equilibrium strategies. The author discusses the advantages and disadvantages of his approach.