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Feasibility and individual rationality in two-person Bayesian games

Author

Listed:
  • Francoise Forges

    (CEREMADE - Université Paris Dauphine (Paris 9), LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine)

  • Ulrich Horst

    () (Department of Mathematics - Humboldt Universität zu Berlin [Berlin])

  • Antoine Salomon

    () (LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine)

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 consider the extension of the result when both players have private information. We are grateful to

Suggested Citation

  • Francoise Forges & Ulrich Horst & Antoine Salomon, 2014. "Feasibility and individual rationality in two-person Bayesian games," Working Papers hal-01094061, HAL.
  • Handle: RePEc:hal:wpaper:hal-01094061
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01094061
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    References listed on IDEAS

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    Cited by:

    1. Forges, Françoise & Horst, Ulrich, 2017. "Sender-Receiver Games with Cooperation," Rationality and Competition Discussion Paper Series 17, CRC TRR 190 Rationality and Competition.

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    Keywords

    Game Theory; Repeated Games; Incomplete Information; Solution concept;

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