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Perfect Bayesian Equilibrium in Kuhn Poker

Author

Listed:
  • Martín Iñaki Loriente

    (Department of Economics, Universidad de San Andrés)

  • Juan Cruz Diez

    (Department of Economics, Universidad de San Andrés)

Abstract

In 1950, Harold W. Kuhn introduced a simplified version of poker referred to as Kuhn Poker and solved it using the notion of Nash Equilibrium. His pioneering work inspired subsequent scholars who applied similar methodologies to other poker versions. In contrast we adopt a different procedure by employing Harsanyi’s approach to reach a Perfect Bayesian Equilibrium (PBE), a concept that emerged two decades after Kuhn’s original solutions. While computational techniques have greatly advanced the analysis of various poker variations, achieving a PBE remains elusive. Some studies suffer from methodological flaws, as they overlook the importance of incorporating beliefs into their analysis. In our research, we also conducted a rationality study and found that relaxing the sophistication of a player leads to a shift in optimal strategies towards more exploitative ones.

Suggested Citation

  • Martín Iñaki Loriente & Juan Cruz Diez, 2023. "Perfect Bayesian Equilibrium in Kuhn Poker," Young Researchers Working Papers 10, Universidad de San Andres, Departamento de Economia, revised Oct 2023.
    • Handle: RePEc:sad:ypaper:10
    as

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    File URL: https://webacademicos.udesa.edu.ar/pub/econ/ydoc10.pdf
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    References listed on IDEAS

    as
    1. Fudenberg, Drew & Tirole, Jean, 1991. "Perfect Bayesian equilibrium and sequential equilibrium," Journal of Economic Theory, Elsevier, vol. 53(2), pages 236-260, April.
    2. David H. Reiley & Michael B. Urbancic & Mark Walker, 2008. "Stripped-Down Poker: A Classroom Game with Signaling and Bluffing," The Journal of Economic Education, Taylor & Francis Journals, vol. 39(4), pages 323-341, September.
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    6. John C. Harsanyi, 1967. "Games with Incomplete Information Played by "Bayesian" Players, I-III Part I. The Basic Model," Management Science, INFORMS, vol. 14(3), pages 159-182, November.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Bayesian; Exploitative; GTO; KuhnPoker; PBE; Poker; Rationality;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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    This paper has been announced in the following NEP Reports:

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