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Bayesian potentials and information structures: Team decision problems revisited

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  • Takashi Ui

Abstract

This paper proposes the use of Bayesian potential games as models of informationally decentralized organizations. Applying techniques in team decision problems by Radner (1962), this paper characterizes Bayesian Nash equilibria in terms of Bayesian potentials and demonstrates using examples that Bayesian potentials are useful tools for studying the efficient use of information in organizations.

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  • Takashi Ui, 2009. "Bayesian potentials and information structures: Team decision problems revisited," International Journal of Economic Theory, The International Society for Economic Theory, vol. 5(3), pages 271-291, September.
    • Handle: RePEc:bla:ijethy:v:5:y:2009:i:3:p:271-291
    DOI: 10.1111/j.1742-7363.2009.00109.x
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    Citations

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    Cited by:

    1. Ui, Takashi & 宇井, 貴志, 2019. "The Lucas Imperfect Information Model with Imperfect Common Knowledge," Discussion Papers 2019-04, Graduate School of Economics, Hitotsubashi University.
    2. Einy, Ezra & Haimanko, Ori, 2023. "Pure-strategy equilibrium in Bayesian potential games with absolutely continuous information," Games and Economic Behavior, Elsevier, vol. 140(C), pages 341-347.
    3. Camille Cornand & Rodolphe dos Santos Ferreira, 2017. "The social value of information and the competition motive: Price vs. quantity games," Working Papers halshs-01614815, HAL.
    4. Ui, Takashi, 2016. "Bayesian Nash equilibrium and variational inequalities," Journal of Mathematical Economics, Elsevier, vol. 63(C), pages 139-146.
    5. Takashi Ui, 2019. "The Lucas Imperfect Information Model with Imperfect Common Knowledge," Working Papers on Central Bank Communication 007, University of Tokyo, Graduate School of Economics.
    6. Takashi Ui, 2020. "LQG Information Design," Working Papers on Central Bank Communication 018, University of Tokyo, Graduate School of Economics.
    7. Einy, Ezra & Haimanko, Ori, 2020. "Equilibrium existence in games with a concave Bayesian potential," Games and Economic Behavior, Elsevier, vol. 123(C), pages 288-294.
    8. de Martí, Joan & Zenou, Yves, 2015. "Network games with incomplete information," Journal of Mathematical Economics, Elsevier, vol. 61(C), pages 221-240.
    9. Takashi Ui & Stephen Morris, 2020. "Incomplete Information Robustness," Working Papers on Central Bank Communication 019, University of Tokyo, Graduate School of Economics.
    10. Antonio Jiménez-Martínez, 2014. "Information acquisition interactions in two-player quadratic games," International Journal of Game Theory, Springer;Game Theory Society, vol. 43(2), pages 455-485, May.
    11. Makoto Shimoji, 2016. "Rationalizable Persuasion," Discussion Papers 16/08, Department of Economics, University of York.
    12. Camille Cornand & Rodolphe Dos Santos Ferreira, 2020. "The social value of information and the competition motive: price versus quantity games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(4), pages 1101-1137, November.
    13. UI, Takashi & 宇井, 貴志, 2015. "Bayesian Nash Equilibrium and Variational Inequalities," Discussion Papers 2015-08, Graduate School of Economics, Hitotsubashi University.
    14. Takashi Ui, 2020. "The Lucas imperfect information model with imperfect common knowledge," The Japanese Economic Review, Springer, vol. 71(1), pages 85-100, January.
    15. Takashi Ui, 2022. "Impacts of Public Information on Flexible Information Acquisition," Papers 2204.09250, arXiv.org, revised Apr 2022.
    16. Benjamin Golub & Stephen Morris, 2020. "Expectations, Networks, and Conventions," Papers 2009.13802, arXiv.org.
    17. Ryo Kato & Tatsushi Okuda, 2017. "Market Concentration and Sectoral Inflation under Imperfect Common Knowledge," IMES Discussion Paper Series 17-E-11, Institute for Monetary and Economic Studies, Bank of Japan.
    18. Ui, Takashi & Yoshizawa, Yasunori, 2015. "Characterizing social value of information," Journal of Economic Theory, Elsevier, vol. 158(PB), pages 507-535.
    19. Arsen Palestini & Ilaria Poggio, 2015. "A Bayesian potential game to illustrate heterogeneity in cost/benefit characteristics," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 62(1), pages 23-39, March.
    20. Masaki Miyashita & Takashi Ui, 2023. "LQG Information Design," Papers 2312.09479, arXiv.org.
    21. Makoto Shimoji, 2022. "Bayesian persuasion in unlinked games," International Journal of Game Theory, Springer;Game Theory Society, vol. 51(3), pages 451-481, November.
    22. Takashi Ui & Yasunori Yoshizawa, 2013. "Radner's Theorem on Teams and Games with a Continuum of Players," Economics Bulletin, AccessEcon, vol. 33(1), pages 72-77.

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