Recently, the joint paper Localized Perfection by Tenured Associate Professor Qiao Lei from the Department of Microeconomics, School of Economics, Shanghai University of Finance and Economics, has been published online in Journal of Economic Theory, a top-tier international economics journal.
Abstract
Perfect equilibrium and its refinements are widely studied and typically rely on full‑support perturbations. We introduce a δ‑localized notion of perfection for games with a continuum of players. It confines perturbations within a δ‑neighborhood of the underlying action distribution and eliminates undesirable equilibria from a local perspective. We establish the existence of a pure strategy δ‑localized perfect equilibrium and show that it is equivalent to δ‑admissible Nash equilibrium. We also study limit versions of δ‑localized perfection. Illustrative applications to large routing games and crowd saturation games are presented.
Qiao Lei is Tenured Associate Professor at the School of Economics, Shanghai University of Finance and Economics. His research focuses on mathematical economics. His works have appeared in journals including Journal of Economic Theory and Games and Economic Behavior. He presides over a Youth Project funded by the National Natural Science Foundation of China and is a Shanghai Chenguang Scholar.
