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2015 | OriginalPaper | Buchkapitel

6. Bayesian Nash Equilibrium

verfasst von : Takako Fujiwara-Greve

Erschienen in: Non-Cooperative Game Theory

Verlag: Springer Japan

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Abstract

In this chapter, we explain Harsanyi’s Bayesian framework for games with incomplete information. For normal-form games with incomplete information, Bayesian games and Bayesian Nash equilibrium are defined.

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Fußnoten
1
To be precise, mathematical equivalence between the infinite hierarchy of beliefs model and Harsanyi’s ‘type’ model needs to be proved. See Mertens and Zamir [12].
 
2
This section is inspired by Watson [14]. The seminal paper on the lemon problem is Akerlof [1].
 
3
Bayes’ rule generates the conditional probability of an event A given that the event B has occurred from the prior probability distribution Pr in such a way that
$$ Pr(A\mid B) = \frac{Pr(A \cap B)}{Pr(B)}.$$
 
4
It is possible to extend the Bayesian framework and the Bayesian Nash equilibrium to infinite type spaces with appropriate probability measures.
 
5
The combination \((NN', N)\) is a Bayesian Nash equilibrium for any P.
 
6
Also called the open or oral auction.
 
7
Generic games is a set of games (interpreted as \(n \times |S|\)-dimensional payoff vectors) which excludes measure 0 sets in the \(n \times |S|\)-dimensional Eucledian space. They are not all games, and therefore counter examples exist. For more details, see Harsanyi [8], Chap. 6 of Fudenberg and Tirole [3], and Govindan et al. [4].
 
8
To be precise, we need to restrict the perturbation structure as well as the target Nash equilibrium.
 
Literatur
1.
Zurück zum Zitat Akerlof G (1970) The market for lemons: quality uncertainty and the market mechanism. Q J Econ 84(3):488–500CrossRef Akerlof G (1970) The market for lemons: quality uncertainty and the market mechanism. Q J Econ 84(3):488–500CrossRef
3.
Zurück zum Zitat Fudenberg D, Tirole J (1991) Game theory. MIT Press, Cambridge, MA Fudenberg D, Tirole J (1991) Game theory. MIT Press, Cambridge, MA
4.
5.
Zurück zum Zitat Harsanyi J (1967) Games with incomplete information played by Bayesian players, part I: the basic model. Manage Sci 14(3):159–182MATHMathSciNetCrossRef Harsanyi J (1967) Games with incomplete information played by Bayesian players, part I: the basic model. Manage Sci 14(3):159–182MATHMathSciNetCrossRef
6.
Zurück zum Zitat Harsanyi J (1968) Games with incomplete information played by Bayesian players, part II: Bayesian equilibrium points. Manage Sci 14(5):320–334 Harsanyi J (1968) Games with incomplete information played by Bayesian players, part II: Bayesian equilibrium points. Manage Sci 14(5):320–334
7.
Zurück zum Zitat Harsanyi J (1968) Games with incomplete information played by Bayesian players, part III: the basic probability distribution of the game. Manage Sci 14(7):486–502MATHMathSciNetCrossRef Harsanyi J (1968) Games with incomplete information played by Bayesian players, part III: the basic probability distribution of the game. Manage Sci 14(7):486–502MATHMathSciNetCrossRef
8.
Zurück zum Zitat Harsanyi J (1973) Games with randomly disturbed payoffs: a new rationale for mixed-strategy equilibrium points. Int J Game Theory 2(1):1–23MATHMathSciNetCrossRef Harsanyi J (1973) Games with randomly disturbed payoffs: a new rationale for mixed-strategy equilibrium points. Int J Game Theory 2(1):1–23MATHMathSciNetCrossRef
9.
Zurück zum Zitat Kajii A, Morris S (1997) The Robustness of equilibria to incomplete information. Econometrica 65(6):1283–1309MathSciNetCrossRef Kajii A, Morris S (1997) The Robustness of equilibria to incomplete information. Econometrica 65(6):1283–1309MathSciNetCrossRef
10.
Zurück zum Zitat Klemperer P (1999) Auction theory: a guide to the literature. J Econ Surv 13(3):227–286CrossRef Klemperer P (1999) Auction theory: a guide to the literature. J Econ Surv 13(3):227–286CrossRef
11.
Zurück zum Zitat Klemperer P (2004) Auctions: theory and practice. Princeton University Press, Princeton, NJ Klemperer P (2004) Auctions: theory and practice. Princeton University Press, Princeton, NJ
12.
Zurück zum Zitat Mertens J-F, Zamir S (1985) Formulation of bayesian analysis for games with incomplete information. Int J Game Theory 14(1):1–29MATHMathSciNetCrossRef Mertens J-F, Zamir S (1985) Formulation of bayesian analysis for games with incomplete information. Int J Game Theory 14(1):1–29MATHMathSciNetCrossRef
13.
Zurück zum Zitat Milgrom P (2004) Putting auction theory to work. Cambridge University Press, Cambridge, UKCrossRef Milgrom P (2004) Putting auction theory to work. Cambridge University Press, Cambridge, UKCrossRef
14.
Zurück zum Zitat Watson J (2007) Strategy: an introduction to game theory, 2nd edn. Norton, New York, NY Watson J (2007) Strategy: an introduction to game theory, 2nd edn. Norton, New York, NY
Metadaten
Titel
Bayesian Nash Equilibrium
verfasst von
Takako Fujiwara-Greve
Copyright-Jahr
2015
Verlag
Springer Japan
DOI
https://doi.org/10.1007/978-4-431-55645-9_6

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