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Pareto refinements of pure-strategy equilibria in games with public and private information

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  • Fu, Haifeng
  • Yu, Haomiao

Abstract

In a Bayesian framework with public and private information that allows countably many players and infinitely many actions, we provide two sufficient conditions that ensure the existence of Pareto-undominated and socially-maximal pure-strategy Bayes–Nash equilibria under the usual diffuseness and independence assumptions: every player has (i) a countable action set, or (ii) a relatively-diffuse strategy-relevant private information space conditioned on a public signal. Our results rely on the theory of distributions of correspondences with infinite-dimensional range and draw on notions of nowhere equivalence, relative saturation, and saturation.

Suggested Citation

  • Fu, Haifeng & Yu, Haomiao, 2018. "Pareto refinements of pure-strategy equilibria in games with public and private information," Journal of Mathematical Economics, Elsevier, vol. 79(C), pages 18-26.
    • Handle: RePEc:eee:mateco:v:79:y:2018:i:c:p:18-26
    DOI: 10.1016/j.jmateco.2018.09.005
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    1. Fu, Haifeng, 2021. "On the existence of Pareto undominated mixed-strategy Nash equilibrium in normal-form games with infinite actions," Economics Letters, Elsevier, vol. 201(C).

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