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Stability in large Bayesian games with heterogeneous players

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  • Deb, Joyee
  • Kalai, Ehud

Abstract

Bayesian Nash equilibria that fail to be hindsight-(or, alternatively, ex-post) stable do not provide reliable predictions of outcomes of games in many applications. We characterize a family of large Bayesian games (with many players) in which all equilibria are asymptotically hindsight-stable, and discuss the consequences of this robustness property. In contrast to earlier literature, we establish hindsight stability in a class of games in which players are not anonymous and type spaces and action spaces can be infinite.

Suggested Citation

  • Deb, Joyee & Kalai, Ehud, 2015. "Stability in large Bayesian games with heterogeneous players," Journal of Economic Theory, Elsevier, vol. 157(C), pages 1041-1055.
    • Handle: RePEc:eee:jetheo:v:157:y:2015:i:c:p:1041-1055
    DOI: 10.1016/j.jet.2015.02.001
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    Cited by:

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    2. Kojevnikov, Denis & Song, Kyungchul, 2023. "Econometric inference on a large Bayesian game with heterogeneous beliefs," Journal of Econometrics, Elsevier, vol. 237(1).
    3. Kojevnikov, Denis & Song, Kyungchul, 2023. "Econometric inference on a large bayesian game with heterogeneous beliefs," Other publications TiSEM aca0631e-4f8a-45c7-af3a-4, Tilburg University, School of Economics and Management.
    4. Kalai, Ehud & Shmaya, Eran, 2018. "Large strategic dynamic interactions," Journal of Economic Theory, Elsevier, vol. 178(C), pages 59-81.
    5. Emerson Melo, 2022. "On the uniqueness of quantal response equilibria and its application to network games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 74(3), pages 681-725, October.
    6. Yang, Jian, 2022. "A Bayesian nonatomic game and its applicability to finite-player situations," Journal of Mathematical Economics, Elsevier, vol. 102(C).
    7. Enxian Chen Bin Wu Hanping Xu, 2024. "The equilibrium properties of obvious strategy profiles in games with many players," Papers 2410.22144, arXiv.org.
    8. Carmona, Guilherme & Podczeck, Konrad, 2020. "Pure strategy Nash equilibria of large finite-player games and their relationship to non-atomic games," Journal of Economic Theory, Elsevier, vol. 187(C).
    9. Georgy Artemov & Yeon-Koo Che & YingHua He, 2023. "Stable Matching with Mistaken Agents," Journal of Political Economy Microeconomics, University of Chicago Press, vol. 1(2), pages 270-320.

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    More about this item

    Keywords

    Large games; Hindsight stability; Ex-post Nash equilibria; Bayesian Nash equilibria;
    All these keywords.

    JEL classification:

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

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