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Existence of structured perfect Bayesian equilibrium in dynamic games of asymmetric information

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  • Deepanshu Vasal

Abstract

In~[1],authors considered a general finite horizon model of dynamic game of asymmetric information, where N players have types evolving as independent Markovian process, where each player observes its own type perfectly and actions of all players. The authors present a sequential decomposition algorithm to find all structured perfect Bayesian equilibria of the game. The algorithm consists of solving a class of fixed-point of equations for each time $t,\pi_t$, whose existence was left as an open question. In this paper, we prove existence of these fixed-point equations for compact metric spaces.

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  • Deepanshu Vasal, 2020. "Existence of structured perfect Bayesian equilibrium in dynamic games of asymmetric information," Papers 2005.05586, arXiv.org, revised May 2020.
    • Handle: RePEc:arx:papers:2005.05586
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    References listed on IDEAS

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    1. Deepanshu Vasal & Randall Berry, 2020. "Fault Tolerant Equilibria in Anonymous Games: best response correspondences and fixed points," Papers 2005.06812, arXiv.org, revised May 2022.
    2. Partha Dasgupta & Eric Maskin, 1986. "The Existence of Equilibrium in Discontinuous Economic Games, II: Applications," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(1), pages 27-41.
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