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Bayesian foundations of nash equilibrium behaviour

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  • Werlang, Sergio Ribeiro da Costa

Abstract

This is part of a larger project to investigate the Bayesian foundations of non-cooperative solution concepts. Elsewhere Bernheim and Pearce prove that common knowledge of Bayesian rationality is not enough to justify the non-cooperative solution concept defined by Nash. Here several alternative behavioural assumptions are considered. In general the coordination required to achieve a Nash equilibrium is very strong. Not only Bayesian rationality, but also the actions taken, have to be common knowledge . For particular kinds of games the coordination required is not as strong.

Suggested Citation

  • Werlang, Sergio Ribeiro da Costa, 1986. "Bayesian foundations of nash equilibrium behaviour," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 6(1), April.
  • Handle: RePEc:sbe:breart:v:6:y:1986:i:1:a:3119
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