ABSTRACT
This chapter discusses the context of repeated games and bargaining and matching models, some attempts at explaining away the discontinuity. It provides some of the issues that arise when a non-cooperative game theoretic foundation is provided for the competitive behaviour in dynamic settings. The chapter discusses the context of repeated games and in the context of dynamic matching and bargaining models, how the discontinuities disappear if there is noise in the model and/or if players, in taking decisions, care about the complexity of their rules of behaviour. It explores some of the issues that arise when a non-cooperative game-theoretic foundation is provided for the competitive behaviour in dynamic settings. Competitive equilibrium and non-cooperative game theory 423 infinity may seem narrow, the issue is important because it is critical in terms of providing a game-theoretic foundation to the competitive behaviour in a dynamic-setting. Competitive equilibrium and non-cooperative game theory 433 probability.
