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Stability in large Bayesian games with heterogeneous players

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  • Deb, Joyee
  • Kalai, Ehud

Abstract

Bayesian Nash equilibria that fail to be hindsight-(or, alternatively, ex-post) stable do not provide reliable predictions of outcomes of games in many applications. We characterize a family of large Bayesian games (with many players) in which all equilibria are asymptotically hindsight-stable, and discuss the consequences of this robustness property. In contrast to earlier literature, we establish hindsight stability in a class of games in which players are not anonymous and type spaces and action spaces can be infinite.

Suggested Citation

  • Deb, Joyee & Kalai, Ehud, 2015. "Stability in large Bayesian games with heterogeneous players," Journal of Economic Theory, Elsevier, vol. 157(C), pages 1041-1055.
    • Handle: RePEc:eee:jetheo:v:157:y:2015:i:c:p:1041-1055
    DOI: 10.1016/j.jet.2015.02.001
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    Cited by:

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    2. Ron Peretz & Amnon Schreiber & Ernst Schulte-Geers, 2022. "The Lipschitz constant of perturbed anonymous games," International Journal of Game Theory, Springer;Game Theory Society, vol. 51(2), pages 293-306, June.
    3. Emerson Melo, 2022. "On the uniqueness of quantal response equilibria and its application to network games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 74(3), pages 681-725, October.
    4. Yang, Jian, 2022. "A Bayesian nonatomic game and its applicability to finite-player situations," Journal of Mathematical Economics, Elsevier, vol. 102(C).
    5. Carmona, Guilherme & Podczeck, Konrad, 2020. "Pure strategy Nash equilibria of large finite-player games and their relationship to non-atomic games," Journal of Economic Theory, Elsevier, vol. 187(C).
    6. Georgy Artemov & Yeon-Koo Che & YingHua He, 2023. "Stable Matching with Mistaken Agents," Journal of Political Economy Microeconomics, University of Chicago Press, vol. 1(2), pages 270-320.

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    More about this item

    Keywords

    Large games; Hindsight stability; Ex-post Nash equilibria; Bayesian Nash equilibria;
    All these keywords.

    JEL classification:

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

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