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Network games with incomplete information

Author

Listed:
  • Joan de Martí
  • Yves Zenou

    (GAINS - ARGUMANS - Atelier De Recherche En Gestion De L'université Du Mans - GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université)

Abstract

We consider a network game with strategic complementarities where the individual reward or the strength of interactions is only partially known by the agents. Players receive different correlated signals and they make inferences about other players' information. We demonstrate that there exists a unique Bayesian-Nash equilibrium. We characterize the equilibrium by disentangling the information effects from the network effects and show that the equilibrium effort of each agent is a weighted combinations of different Katz–Bonacich centralities.

Suggested Citation

  • Joan de Martí & Yves Zenou, 2015. "Network games with incomplete information," Post-Print hal-04329656, HAL.
    • Handle: RePEc:hal:journl:hal-04329656
    DOI: 10.1016/j.jmateco.2015.10.002
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    Cited by:

    1. Zhu, Haoruo & Ni, Yaodong & Yang, Meng & Song, Qinyu, 2023. "Blessing or curse? Impact of incomplete information in a networked cournot competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 179(C).

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