Feasibility and individual rationality in two-person Bayesian games
Abstract We define feasible, posterior individually rational solutions for two-person Bayesian games with a single informed player. Such a solution can be achieved by direct signalling from the informed player and requires approval of both players after the signal has been sent. Without further assumptions on the Bayesian game, a solution does not necessarily exist. We show that, if the uninformed player has a “uniform punishment strategy” against the informed one, the existence of a solution follows from the existence of Nash equilibrium in infinitely repeated games with lack of information on one side. We also consider the extension of the result when both players have private information.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 45 (2016)
Issue (Month): 1 (March)
|Contact details of provider:|| Web page: http://www.springer.com|
|Order Information:||Web: http://www.springer.com/economics/economic+theory/journal/182/PS2|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Michael Peters & Balázs Szentes, 2012.
"Definable and Contractible Contracts,"
Econometric Society, vol. 80(1), pages 363-411, 01.
- Peters, Michael & Szentes, Balazs, 2009. "Definable and Contractible Contracts," Microeconomics.ca working papers michael_peters-2009-7, Vancouver School of Economics, revised 13 May 2010.
- repec:dau:papers:123456789/11052 is not listed on IDEAS
- Robert J. Aumann, 1995. "Repeated Games with Incomplete Information," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011476, July.
- Tennenholtz, Moshe, 2004. "Program equilibrium," Games and Economic Behavior, Elsevier, vol. 49(2), pages 363-373, November.
- Kalai, Adam Tauman & Kalai, Ehud & Lehrer, Ehud & Samet, Dov, 2010. "A commitment folk theorem," Games and Economic Behavior, Elsevier, vol. 69(1), pages 127-137, May.
- Salomon, Antoine & Forges, Françoise, 2015. "Bayesian repeated games and reputation," Journal of Economic Theory, Elsevier, vol. 159(PA), pages 70-104.
- Francoise Forges & Antoine Salomon, 2014. "Bayesian Repeated Games and Reputations," CESifo Working Paper Series 4700, CESifo Group Munich.
- Francoise Forges & Antoine Salomon, 2014. "Bayesian repeated games and reputation," Working Papers hal-00803919, HAL.
- Francoise Forges, 2013. "A folk theorem for Bayesian games with commitment," Post-Print hal-01252953, HAL.
- Celik, Gorkem & Peters, Michael, 2011. "Equilibrium rejection of a mechanism," Games and Economic Behavior, Elsevier, vol. 73(2), pages 375-387.
- Celik, Gorkem & Peters, Michael, 2008. "Equilibrium Rejection of a Mechanism," Microeconomics.ca working papers gorkem_celik-2008-10, Vancouver School of Economics, revised 06 Aug 2008.
- Jérôme Renault, 2001. "3-player repeated games with lack of information on one side," International Journal of Game Theory, Springer;Game Theory Society, vol. 30(2), pages 221-245.
- Robert J. Aumann & Sergiu Hart, 2003. "Long Cheap Talk," Econometrica, Econometric Society, vol. 71(6), pages 1619-1660, November.
- Robert J. Aumann & Sergiu Hart, 2002. "Long Cheap Talk," Discussion Paper Series dp284, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem, revised Nov 2002.
- repec:dau:papers:123456789/6109 is not listed on IDEAS
- Simon, Robert Samuel, 2002. "Separation of joint plan equilibrium payoffs from the min-max functions," Games and Economic Behavior, Elsevier, vol. 41(1), pages 79-102, October.
- Gorkem Celik & Michael Peters, 2016. "Reciprocal relationships and mechanism design," Canadian Journal of Economics, Canadian Economics Association, vol. 49(1), pages 374-411, February.
- Celik, Gorkem & Peters, Michael, 2011. "Reciprocal Relationships and Mechanism Design," Microeconomics.ca working papers gorkem_celik-2011-19, Vancouver School of Economics, revised 01 Aug 2011.
- Françoise Forges, 1990. "Equilibria with Communication in a Job Market Example," The Quarterly Journal of Economics, Oxford University Press, vol. 105(2), pages 375-398.
- Forges, Françoise, 2013. "A folk theorem for Bayesian games with commitment," Games and Economic Behavior, Elsevier, vol. 78(C), pages 64-71.
- Shalev Jonathan, 1994. "Nonzero-Sum Two-Person Repeated Games with Incomplete Information and Known-Own Payoffs," Games and Economic Behavior, Elsevier, vol. 7(2), pages 246-259, September. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:spr:jogath:v:45:y:2016:i:1:d:10.1007_s00182-015-0520-8. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
If references are entirely missing, you can add them using this form.