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A folk theorem for Bayesian games with commitment

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  • Forges, Françoise

Abstract

The set of all Bayesian–Nash equilibrium payoffs that the players can achieve by making conditional commitments at the interim stage of a Bayesian game coincides with the set of all feasible, incentive compatible and interim individually rational payoffs of the Bayesian game. Furthermore, the various equilibrium payoffs, which are achieved by means of different commitment devices, are also the equilibrium payoffs of a universal, deterministic commitment game.

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File URL: http://www.sciencedirect.com/science/article/pii/S0899825612001868
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Bibliographic Info

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 78 (2013)
Issue (Month): C ()
Pages: 64-71

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Handle: RePEc:eee:gamebe:v:78:y:2013:i:c:p:64-71

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Web page: http://www.elsevier.com/locate/inca/622836

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Keywords: Bayesian game; Commitment; Contract; Incentive compatibility; Interim individual rationality;

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Cited by:
  1. Francoise Forges & Antoine Salomon, 2014. "Bayesian Repeated Games and Reputations," CESifo Working Paper Series 4700, CESifo Group Munich.

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