Epsilon-equilibrium

Epsilon-equilibrium
A solution concept in game theory
Relationship
Superset ofNash Equilibrium
Significance
Used forstochastic games

In game theory, an epsilon-equilibrium, or near-Nash equilibrium, is a strategy profile that approximately satisfies the condition of Nash equilibrium. In a Nash equilibrium, no player has an incentive to change his behavior. In an approximate Nash equilibrium, this requirement is weakened to allow the possibility that a player may have a small incentive to do something different. This may still be considered an adequate solution concept, assuming for example status quo bias. This solution concept may be preferred to Nash equilibrium due to being easier to compute, or alternatively due to the possibility that in games of more than 2 players, the probabilities involved in an exact Nash equilibrium need not be rational numbers.[1]

  1. ^ V. Bubelis (1979). "On equilibria in finite games". International Journal of Game Theory. 8 (2): 65–79. doi:10.1007/bf01768703. S2CID 122843303.

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