Abstract:

This paper introduces the space of (lexicographic) l-numbers and uses it to analyze extensive-form games. l-Numbers are a simplified, two-dimensional version of the hyperreal numbers, with straightforward operations that make it easy to work with infinitesimal probabilities. We use l-numbers to provide simple characterizations of tremble-based equilibrium concepts, such as sequential equilibria or sequential stable outcomes, without using sequences of strategy profiles.

For further information please contact elisur.magrini@unibocconi.it