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Characterization of equilibrium existence and purification in general Bayesian games

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  • Wei He
  • Xiang Sun
  • Yeneng Sun
  • Yishu Zeng

Abstract

This paper studies Bayesian games with general action spaces, correlated types and interdependent payoffs. We introduce the condition of ``decomposable coarser payoff-relevant information'', and show that this condition is both sufficient and necessary for the existence of pure-strategy equilibria and purification from behavioral strategies. As a consequence of our purification method, a new existence result on pure-strategy equilibria is also obtained for discontinuous Bayesian games. Illustrative applications of our results to oligopolistic competitions and all-pay auctions are provided.

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  • Wei He & Xiang Sun & Yeneng Sun & Yishu Zeng, 2021. "Characterization of equilibrium existence and purification in general Bayesian games," Papers 2106.08563, arXiv.org.
    • Handle: RePEc:arx:papers:2106.08563
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    References listed on IDEAS

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    Cited by:

    1. He, Wei & Sun, Yeneng, 2022. "Conditional expectation of Banach valued correspondences and economic applications," Journal of Mathematical Economics, Elsevier, vol. 101(C).

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