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Imperfectly Observable Commitments in n-Player Games

Author

Listed:
  • Gueth, Werner

    (Institut fuer Wirtschaftstheorie III, Humboldt-Universitaet Berlin)

  • Kirchsteiger, Georg

    (Institut fuer Wirtschaftswissenschaften, University of Vienna)

  • Ritzberger, Klaus

    (Department of Economics, Institute for Advanced Studies, Vienna)

Abstract

In a two-stage extensive form game where followers can observe moves by leaders only with noise, pure subgame perfect Nash equilibria of the limiting game without noise may not survive arbitrarily small noise. Still, for generic games, there is always at least one subgame perfect equilibrium outcome of the game with no noise that is approximated by equilibrium outcomes of games with small noise. This, however, depends crucially on generic payoffs.

Suggested Citation

  • Gueth, Werner & Kirchsteiger, Georg & Ritzberger, Klaus, 1996. "Imperfectly Observable Commitments in n-Player Games," Economics Series 35, Institute for Advanced Studies.
    • Handle: RePEc:ihs:ihsesp:35
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    File URL: https://irihs.ihs.ac.at/id/eprint/922
    File Function: First version, 1996
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    Citations

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    Cited by:

    1. Morgan, John & Vardy, Felix, 2007. "The value of commitment in contests and tournaments when observation is costly," Games and Economic Behavior, Elsevier, vol. 60(2), pages 326-338, August.
    2. Huck, Steffen & Muller, Wieland, 2000. "Perfect versus Imperfect Observability--An Experimental Test of Bagwell's Result," Games and Economic Behavior, Elsevier, vol. 31(2), pages 174-190, May.
    3. Bhaskar, V. & van Damme, Eric, 2002. "Moral Hazard and Private Monitoring," Journal of Economic Theory, Elsevier, vol. 102(1), pages 16-39, January.
    4. Brishti Guha, 2017. "Costly Leader Games with a Probabilistically Non-Strategic Leader," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 19(02), pages 1-14, June.
    5. Jörg Oechssler & Karl H Schlag, 1997. "Loss of Commitment? An Evolutionary Analysis of Bagwell’s Example," Levine's Working Paper Archive 598, David K. Levine.
    6. Bhaskar, V, 2005. "Commitment and Observability in an Economic Environment," Economics Discussion Papers 8887, University of Essex, Department of Economics.
    7. Jorg Oechssler & Karl Schlag, 1997. "An Evolutionary Analysis of Bagwell's Example," Game Theory and Information 9704001, University Library of Munich, Germany, revised 11 Apr 1997.
    8. Giorgos Stamatopoulos, 2016. "Cournot and Stackelberg equilibrium under strategic delegation: an equivalence result," Theory and Decision, Springer, vol. 81(4), pages 553-570, November.
    9. Lagerlof, Johan, 2003. "Policy-Motivated Candidates, Noisy Platforms, and Non-robustness," Public Choice, Springer, vol. 114(3-4), pages 319-347, March.
    10. Morgan, John & Vardy, Felix, 2004. "An experimental study of commitment in Stackelberg games with observation costs," Games and Economic Behavior, Elsevier, vol. 49(2), pages 401-423, November.
    11. Tanja Hörtnagl & Rudolf Kerschbamer, 2014. "How the Value of Information Shapes the Value of Commitment Or: Why the Value of Commitment Does Not Vanish," Working Papers 2014-03, Faculty of Economics and Statistics, Universität Innsbruck.
    12. Takahashi, Satoru & Tercieux, Olivier, 2020. "Robust equilibrium outcomes in sequential games under almost common certainty of payoffs," Journal of Economic Theory, Elsevier, vol. 188(C).
    13. Bhaskar, V., 2009. "Commitment and observability in a contracting environment," Games and Economic Behavior, Elsevier, vol. 66(2), pages 708-720, July.
    14. Werner Güth, 2002. "On the Inconsistency of Equilibrium Refinement," Theory and Decision, Springer, vol. 53(4), pages 371-392, December.
    15. Reuben Bearman, 2023. "Signaling Games with Costly Monitoring," Papers 2302.01116, arXiv.org.

    More about this item

    Keywords

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    JEL classification:

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

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