Paper #1930

Title:

On the impossibility of stability-based equilibria in infinite horizon: An example

Authors:

Alexander Frug and Malachy James Gavan

Date:

December 2025

Abstract:

This paper shows that stability-based equilibrium refinements may not be well defined when taken to the infinite horizon. To do so, we use a stable-set-style notion of the dynamically consistent partition, allowing for incomplete information. We provide a concrete example where, only via taking the game to the infinite horizon, the dynamically consistent partition of equilibria does not exist.

Keywords:

dynamic learning and communication , revision-proof equilibria

JEL codes:

D83

Area of Research:

Microeconomics

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