Selten's perfectness criterion shows that rational equilibrium selection must be stable under small perturbations, which Kreps's payoff examples directly demonstrate weak dominance deletion fails to satisfy.
?Rate how convincing each reason is below to see the overall strength.
No one has weighed in yet. Be the first to share reasons for or against this statement.
Sign in or register to share your perspective on this statement.
Reinhard Selten was a German economist and game theorist who won the Nobel Prize for developing new ways to analyze strategic situations where people make decisions affecting each other.
Stable under small perturbations(game theory)
A solution that still works and makes sense even if small, accidental changes happen to the game's conditions.
Weak dominance deletion(game theory)
A method for simplifying games by removing choices that are never quite the best option, even if other options are only slightly better.