Robust Equilibria of Potential Games

Potential games are games with potential functions. Technically, the potential function defines a refinement concept. We provide justification for this refinement concept using the notion of robustness of equilibria. A Nash equilibrium of a complete information game is said to be robust if every incomplete information game where payoffs are almost always given by the complete information game has an equilibrium which generates behavior close to the Nash equilibrium. We show that Nash equilibria that maximize potential functions are generically robust