REPEATED GAMES WITH ASYMPTOTICALLY FINITE HORIZONS

We study a class of repeated games in which the discount factor falls asymptotically to zero through time (reflecting, for example, a vanish ing probability of continuation). For an important class of stage game s, we give a condition on the sequence of discount factors that is nec essary and sufficient for the existence of nondegenerate equilibria. W e also study the properties of the equilibrium set when this condition is satisfied. (C) 1995 Academic Press, Inc.