970572have shown that if play induced by optimal strategies is absolutely continuous with respect to players' beliefs about the future evolution of play, then Bayesian updating eventually leads to Nash equilibrium. However, absolute continuity is not a necessary condition for weak convergence to Nash equilibrium. In this paper, I present a set of necessary and sufficient conditions that ensure that Bayesian updating eventually leads to Nash equilibrium. More important, I show that absolute continuity does not rule out any play that is asymptotically consistent with Nash equilibrium play.Journal of Economic LiteratureClassification Number: D83.
ASJC Scopus subject areas
- Economics and Econometrics