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We analyze "nice" games (where action spaces are compact intervals, utilities continuous and strictly concave in own action), which are used frequently in classical economic models. Without making any "richness" assumption, we characterize the sensitivity of any given Bayesian Nash equilibrium...
Persistent link: https://www.econbiz.de/10008914615
In the reputation literature, players have \emph{commitment types} which represent the possibility that they do not have standard payoffs but instead are constrained to follow a particular plan. In this paper, we show that arbitrary commitment types can emerge from incomplete information about...
Persistent link: https://www.econbiz.de/10011127591
We show that in any game that is continuous at infinity, if a plan of action a<sub>i</sub> is played by a type t<sub>i</sub> in a Bayesian Nash equilibrium, then there are perturbations of t<sub>i</sub> for which a<sub>i</sub> is the only rationalizable plan and whose unique rationalizable belief regarding the play of the game is...
Persistent link: https://www.econbiz.de/10010970153
In the reputation literature, players have \emph{commitment types} which represent the possibility that they do not have standard payoffs but instead are constrained to follow a particular plan. In this paper, we show that arbitrary commitment types can emerge from incomplete information about...
Persistent link: https://www.econbiz.de/10011599566
Rationalizability is a central solution concept of game theory. Economic models often have many rationalizable outcomes, motivating economists to use refinements of rationalizability, including equilibrium refinements. In this paper we try to achieve a general understanding of when this...
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