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Strategic Knowledge Sharing in Bayesian Games: A General Model

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  • Frédéric KOESSLER

Abstract

This paper provides a general model for the study of strategic knowledge sharing in any finite Bayesian game. Unlike earlier papers on strategic information revelation, higher-order uncertainties can be incorporated into the model. We propose an equilibrium concept, called knowledge equilibrium, which takes into account voluntary, public, and decentralized communication possibilities of exogenously certifiable statements. After the communication stage, beliefs are explicitly deduced from consistent possibility correspondences, without making reference to sequences of perturbed games. Several properties of knowledge equilibria and revised knowledge are examined. In particular, it is shown that a knowledge equilibrium is always a sequential equilibrium of the associated extensive form game with communication.

Suggested Citation

  • Frédéric KOESSLER, 2002. "Strategic Knowledge Sharing in Bayesian Games: A General Model," Working Papers of BETA 2002-01, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    • Handle: RePEc:ulp:sbbeta:2002-01
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    References listed on IDEAS

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    Cited by:

    1. Frédéric KOESSLER, 2002. "Strategic Knowledge Sharing in Bayesian Games: Applications," Working Papers of BETA 2002-02, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    2. Koessler, Frederic, 2004. "Strategic knowledge sharing in Bayesian games," Games and Economic Behavior, Elsevier, vol. 48(2), pages 292-320, August.

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    More about this item

    Keywords

    Strategic information revelation; Interactive knowledge; Bayesian games; Knowledge revision; Consistent beliefs.;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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