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Behavioral Perfect Equilibrium in Bayesian Games

Author

Listed:
  • Elnaz Bajoori

    (University of Bath)

  • Janos Flesch

    (Maastricht University)

  • Dries Vermeulen

    (Maastricht University)

Abstract

We develop the notion of perfect Bayesian Nash Equilibrium—perfect BNE—in general Bayesian games. We test perfect BNE against the criteria laid out by Kohlberg and Mertens (1986). We show that, for a focal class of Bayesian games, perfect BNE exists. Moreover, when payoffs are continuous, perfect BNE is limit undominated for almost every type.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Elnaz Bajoori & Janos Flesch & Dries Vermeulen, 2013. "Behavioral Perfect Equilibrium in Bayesian Games," Department of Economics Working Papers 16/13, University of Bath, Department of Economics.
    • Handle: RePEc:eid:wpaper:58137
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    References listed on IDEAS

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    Cited by:

    1. Bajoori, Elnaz & Vermeulen, Dries, 2019. "Equilibrium selection in interdependent value auctions," Mathematical Social Sciences, Elsevier, vol. 98(C), pages 47-56.
    2. Roger B. Myerson & Philip J. Reny, 2020. "Perfect Conditional ε‐Equilibria of Multi‐Stage Games With Infinite Sets of Signals and Actions," Econometrica, Econometric Society, vol. 88(2), pages 495-531, March.
    3. Oriol Carbonell-Nicolau, 2021. "Perfect equilibria in games of incomplete information," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(4), pages 1591-1648, June.

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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