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A systematic procedure for finding Perfect Bayesian Equilibria in Incomplete Information Games

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  • Munoz-Garcia Felix

    (Washington State University)

Abstract

This paper provides a non-technical introduction to a procedure to find Perfect Bayesian equilibria (PBEs) in incomplete information games. Despite the rapidly expanding literature on industrial organization that uses PBE as its main solution concept, most undergraduate and graduate textbooks still present a relatively theoretical introduction to PBEs. This paper offers a systematic five-step procedure that helps students find all pure-strategy PBEs in incomplete information games. Furthermore, it illustrates a step-by-step application of this procedure to a signaling game, using a worked-out example.

Suggested Citation

  • Munoz-Garcia Felix, 2012. "A systematic procedure for finding Perfect Bayesian Equilibria in Incomplete Information Games," Journal of Industrial Organization Education, De Gruyter, vol. 6(1), pages 1-18, December.
    • Handle: RePEc:bpj:jioedu:v:6:y:2012:i:1:p:1-18:n:8
    DOI: 10.1515/1935-5041.1049
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    References listed on IDEAS

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    Cited by:

    1. ANANTHARAMAN, SENTHILKUMAR KUMAR DR & Kapoor, Rohit & Elitzur, Ramy & Chaudhari, Sanjay C & Chawan, VinaySingh J, 2025. "Essays on Modelling Public-Private-Partnerships (PPP) for Indian Emergency Medical Services," Thesis Commons 5m49e_v1, Center for Open Science.
    2. Anantharaman, Senthil Kumar & Kapoor, Rohit & Elitzur, Ramy & Chaudhari, sanjay & Chawan, Vinay Singh, 2021. "Essays on Modelling Public-Private-Partnerships (PPP) for Indian Emergency Medical Services," MPRA Paper 125056, University Library of Munich, Germany, revised 28 Dec 2021.
    3. Anantharaman, Senthil Kumar, 2021. "Essays on Modelling Public-Private-Partnerships (PPP) for Indian Emergency Medical Services," EconStor Theses, ZBW - Leibniz Information Centre for Economics, number 319602.

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