The Comparison of Information Structures in Games: Bayes Correlated Equilibrium and Individual Sufficiency
AbstractWe define and characterize a notion of correlated equilibrium for games with incomplete information, which we call Bayes correlated equilibrium: The set of outcomes that can arise in Bayes Nash equilibria of an incomplete information game where players may have access to additional signals beyond the information structure is characterized and shown to be equivalent to the set of Bayes correlated equilibria. A game of incomplete information can be decomposed into a basic game, given by actions sets and payoff functions, and an information structure. We introduce a partial order on many player information structures -- which we call individual sufficiency -- under which more information shrinks the set of Bayes correlated equilibria. We discuss the relation of the solution concept to alternative definitions of correlated equilibrium in incomplete information games and of the partial order on information structures to others, including Blackwell's for the single player case.
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Bibliographic InfoPaper provided by David K. Levine in its series Levine's Working Paper Archive with number 786969000000000730.
Date of creation: 19 Sep 2013
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Other versions of this item:
- Dirk Bergemann & Stephen Morris, 2013. "The Comparison of Information Structures in Games: Bayes Correlated Equilibrium and Individual Sufficiency," Cowles Foundation Discussion Papers 1909R, Cowles Foundation for Research in Economics, Yale University, revised May 2014.
- Dirk Bergemann & Stephen Morris, 2013. "The Comparison of Information Structures in Games: Bayes Correlated Equilibrium and Individual Sufficiency," Cowles Foundation Discussion Papers 1909, Cowles Foundation for Research in Economics, Yale University.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-26 (All new papers)
- NEP-CTA-2013-09-26 (Contract Theory & Applications)
- NEP-GTH-2013-09-26 (Game Theory)
- NEP-HPE-2013-09-26 (History & Philosophy of Economics)
- NEP-MIC-2013-09-26 (Microeconomics)
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