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Equilibria in infinite games of incomplete information

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  • Oriol Carbonell-Nicolau

    (Rutgers University)

Abstract

The notion of communication equilibrium extends Aumann’s (J Math Econ 1:67–96, 1974, https://doi.org/10.1016/0304-4068(74)90037-8 ) correlated equilibrium concept for complete information games to the case of incomplete information. This paper shows that this solution concept has the following property: for the class of incomplete information games with compact metric type and action spaces, and with payoff functions jointly measurable and continuous in actions, limits of Bayes-Nash equilibria of finite approximations to an infinite game are communication equilibria (and, in general, not Bayes-Nash equilibria) of the limit game. Stinchcombe’s (J Econ Theory 146:638–655, 2011b, https://doi.org/10.1016/j.jet.2010.12.006 ) extension of Aumann’s (J Math Econ 1:67–96, 1974, https://doi.org/10.1016/0304-4068(74)90037-8 ) solution concept to the case of incomplete information fails to satisfy this condition.

Suggested Citation

  • Oriol Carbonell-Nicolau, 2021. "Equilibria in infinite games of incomplete information," International Journal of Game Theory, Springer;Game Theory Society, vol. 50(2), pages 311-360, June.
    • Handle: RePEc:spr:jogath:v:50:y:2021:i:2:d:10.1007_s00182-020-00744-y
    DOI: 10.1007/s00182-020-00744-y
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    More about this item

    Keywords

    Infinite games of incomplete information; Bayes-Nash equilibrium; Communication equilibrium; Correlated equilibrium; Strategic approximation of an infinite game;
    All these keywords.

    JEL classification:

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

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