Dependence and Uniqueness in Bayesian Games
AbstractThis paper studies uniqueness of equilibrium in symmetric 2 x 2 bayesian games.� It shows that if signals are highly but not perfectly dependent then players play their risk-dominant actions for all but a vanishing set of signal realizations.� In contrast to the global games literature, noise is not assumed to be additive.� Dependence is modeled using the theory of copulas.
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Bibliographic InfoPaper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 603.
Date of creation: 01 Apr 2012
Date of revision:
Bayesian games; Global games; Uniqueness; Copulas; Risk dominance;
Other versions of this item:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-05-02 (All new papers)
- NEP-GTH-2012-05-02 (Game Theory)
- NEP-HPE-2012-05-02 (History & Philosophy of Economics)
- NEP-MIC-2012-05-02 (Microeconomics)
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