Advanced Search
MyIDEAS: Login

Belief-free equilibria in games with incomplete information: characterization and existence

Contents:

Author Info

  • Lovo, Stefano

    ()

  • Tomala, Tristan

    ()

  • Hörner, Johannes

    ()

Registered author(s):

    Abstract

    In this paper, the authors characterize belief-free equilibria in infinitely repeated games with incomplete information with N \ge 2 players and arbitrary information structures. This characterization involves a new type of individual rational constraint linking the lowest equilibrium payoffs across players. The characterization is tight: we define a set of payoffs that contains all the belief-free equilibrium payoffs; conversely, any point in the interior of this set is a belief-free equilibrium payoff vector when players are sufficiently patient. Further, we provide necessary conditions and sufficient conditions on the information structure for this set to be non-empty, both for the case of known-own payoffs, and for arbitrary payoffs.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.hec.fr/var/fre/storage/original/application/0db41102b0541d8003ce2083e7f50ad5.pdf
    Download Restriction: no

    Bibliographic Info

    Paper provided by HEC Paris in its series Les Cahiers de Recherche with number 921.

    as in new window
    Length: 79 pages
    Date of creation: 10 Oct 2009
    Date of revision:
    Handle: RePEc:ebg:heccah:0921

    Contact details of provider:
    Postal: HEC Paris, 78351 Jouy-en-Josas cedex, France
    Web page: http://www.hec.fr/
    More information through EDIRC

    Related research

    Keywords: repeated game with incomplete information; Harsanyi doctrine; belief-free equilibria;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. Jeffrey C. Ely & Johannes Hörner & Wojciech Olszewski, 2005. "Belief-Free Equilibria in Repeated Games," Econometrica, Econometric Society, vol. 73(2), pages 377-415, 03.
    2. Fudenberg, Drew & Levine, David K, 1989. "Reputation and Equilibrium Selection in Games with a Patient Player," Econometrica, Econometric Society, vol. 57(4), pages 759-78, July.
    3. Johannes Hörner & Stefano Lovo, 2009. "Belief-Free Equilibria in Games With Incomplete Information," Econometrica, Econometric Society, vol. 77(2), pages 453-487, 03.
    4. Martin W. Cripps & Jonathan Thomas, 2004. "Some Asymptotic Results in Discounted Repeated Games of One-Sided Incomplete Information," ESE Discussion Papers 76, Edinburgh School of Economics, University of Edinburgh.
    5. Peski, Marcin, 2008. "Repeated games with incomplete information on one side," Theoretical Economics, Econometric Society, vol. 3(1), March.
    6. Thomas, J. P., 1995. "Subgame-perfect attainment of minimax punishments in discounted two-person games," Economics Letters, Elsevier, vol. 47(1), pages 1-4, January.
    7. Forges, Francoise, 1992. "Repeated games of incomplete information: Non-zero-sum," Handbook of Game Theory with Economic Applications, in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 1, chapter 6, pages 155-177 Elsevier.
    8. Renault, Jerome & Tomala, Tristan, 2004. "Communication equilibrium payoffs in repeated games with imperfect monitoring," Games and Economic Behavior, Elsevier, vol. 49(2), pages 313-344, November.
    9. Israeli, Eitan, 1999. "Sowing Doubt Optimally in Two-Person Repeated Games," Games and Economic Behavior, Elsevier, vol. 28(2), pages 203-216, August.
    10. Johannes Horner & Stefano Lovo & Tristan Tomala, 2009. "Belief-free Equilibria in Games with Incomplete Information: Characterization and Existence," Cowles Foundation Discussion Papers 1739, Cowles Foundation for Research in Economics, Yale University.
    11. Takahashi, Satoru & Chassang, Sylvain, 2011. "Robustness to incomplete information in repeated games," Theoretical Economics, Econometric Society, vol. 6(1), January.
    12. Ely, Jeffrey C. & Valimaki, Juuso, 2002. "A Robust Folk Theorem for the Prisoner's Dilemma," Journal of Economic Theory, Elsevier, vol. 102(1), pages 84-105, January.
    13. Forges, Francoise & Minelli, Enrico, 1997. "A Property of Nash Equilibria in Repeated Games with Incomplete Information," Games and Economic Behavior, Elsevier, vol. 18(2), pages 159-175, February.
    14. Renault, Jerome & Tomala, Tristan, 2004. "Learning the state of nature in repeated games with incomplete information and signals," Games and Economic Behavior, Elsevier, vol. 47(1), pages 124-156, April.
    15. Wiseman, Thomas, 2012. "A partial folk theorem for games with private learning," Theoretical Economics, Econometric Society, vol. 7(2), May.
    16. Mertens, J.-F., 1986. "Repeated games," CORE Discussion Papers 1986024, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    17. Fudenberg, Drew & Maskin, Eric, 1991. "On the dispensability of public randomization in discounted repeated games," Journal of Economic Theory, Elsevier, vol. 53(2), pages 428-438, April.
    18. Horner, Johannes & Lovo, Stefano & Tomala, Tristan, 2009. "Belief-free Equilibria in Games with Incomplete Information: Characterization and Existence," Economics Papers from University Paris Dauphine 123456789/9834, Paris Dauphine University.
    19. Piccione, Michele, 2002. "The Repeated Prisoner's Dilemma with Imperfect Private Monitoring," Journal of Economic Theory, Elsevier, vol. 102(1), pages 70-83, January.
    20. Ehud Kalai, 2004. "Large Robust Games," Econometrica, Econometric Society, vol. 72(6), pages 1631-1665, November.
    21. Dirk Bergemann & Stephen Morris, 2007. "Belief Free Incomplete Information Games," Cowles Foundation Discussion Papers 1629, Cowles Foundation for Research in Economics, Yale University.
    22. Shalev Jonathan, 1994. "Nonzero-Sum Two-Person Repeated Games with Incomplete Information and Known-Own Payoffs," Games and Economic Behavior, Elsevier, vol. 7(2), pages 246-259, September.
    23. Renault, Jérôme, 2001. "3-player repeated games with lack of information on one side," Economics Papers from University Paris Dauphine 123456789/6538, Paris Dauphine University.
    24. Fudenberg, Drew & Maskin, Eric, 1986. "The Folk Theorem in Repeated Games with Discounting or with Incomplete Information," Econometrica, Econometric Society, vol. 54(3), pages 533-54, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ebg:heccah:0921. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sandra Dupouy).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.