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Pure-strategy equilibria in Bayesian games

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  • He, Wei
  • Sun, Yeneng

Abstract

A general condition called “coarser inter-player information” is introduced and shown to be necessary and sufficient for the validity of several fundamental properties on pure-strategy equilibria in Bayesian games, such as existence, purification from behavioral strategies, and convergence for a sequence of games. Our sufficiency results cover various earlier results on pure-strategy equilibria in Bayesian games as special cases. New applications are presented as illustrative examples, including auctions with externalities and risk-neutral bidders, and Bertrand pricing games with asymmetric information.

Suggested Citation

  • He, Wei & Sun, Yeneng, 2019. "Pure-strategy equilibria in Bayesian games," Journal of Economic Theory, Elsevier, vol. 180(C), pages 11-49.
    • Handle: RePEc:eee:jetheo:v:180:y:2019:i:c:p:11-49
    DOI: 10.1016/j.jet.2018.11.007
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    Cited by:

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    3. Einy, Ezra & Haimanko, Ori, 2020. "Equilibrium existence in games with a concave Bayesian potential," Games and Economic Behavior, Elsevier, vol. 123(C), pages 288-294.
    4. Zeng, Yishu, 2023. "Derandomization of persuasion mechanisms," Journal of Economic Theory, Elsevier, vol. 212(C).
    5. Wu, Bin, 2022. "On pure-strategy Nash equilibria in large games," Games and Economic Behavior, Elsevier, vol. 132(C), pages 305-315.
    6. Yang, Jian, 2022. "A Bayesian nonatomic game and its applicability to finite-player situations," Journal of Mathematical Economics, Elsevier, vol. 102(C).
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    8. Pavlo Prokopovych & Nicholas C. Yannelis, 2022. "On nondegenerate equilibria of double auctions with several buyers and a price floor," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 73(2), pages 625-654, April.
    9. Oriol Carbonell-Nicolau, 2021. "Perfect equilibria in games of incomplete information," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 71(4), pages 1591-1648, June.

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    More about this item

    Keywords

    Bayesian game; Characterization; Coarser inter-player information; Pure-strategy equilibrium existence; Purification; Closed graph property;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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