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The paper provides a specification of belief systems for models of large economies with anonymity in which aggregate states depend only on cross-section distributions of types. For belief systems satisfying certain conditions of mutual absolute continuity, the paper gives a necessary and...
Persistent link: https://www.econbiz.de/10009007127
Aumann has shown that agents who have a common prior cannot have common knowledge of their posteriors for event $E$ if … common knowledge that the posteriors for $E$ \emph{do} coincide? We show that a necessary and sufficient condition for this … is the existence of a nonempty \emph{finite} event $F$ with the following two properties. First, it is common knowledge …
Persistent link: https://www.econbiz.de/10011694981
We employ the theory of Bayesian potential games to characterize pure-strategy equilibria of a Bayesian game with finite type structures, taking into account the cost/benefit features of agents. Building on a standard model of oligopolistic competition also applicable to environmental issues...
Persistent link: https://www.econbiz.de/10013103125
The modeling of awareness and unawareness is a significant topic in the doxastic logic literature, where it is usually tackled in terms of full belief operators. The present paper aims at a treatment in terms of partial belief operators. It draws upon the modal probabilistic logic that was...
Persistent link: https://www.econbiz.de/10011620628
This study focuses on discovered versions of coordination games with unawareness, and proposes a novel solution concept under unawareness named a successful-coordination equilibrium. In games with unawareness, coordination might fail because the models assume that agents are unaware of their...
Persistent link: https://www.econbiz.de/10013295525
(statistically) disassociated from each other and how are such disassociations reflected in the agents’ knowledge structure … disassociation under common knowledge (the agents’ types are independent, conditional on some common-knowledge variable). Subjective … that disassociates types is more informative than any common-knowledge variable. With three or more agents, conditions (i …
Persistent link: https://www.econbiz.de/10003873501
desired coordination of actions even when a high order of mutual knowledge of payoff functions obtains. We want to make … explicit the role of knowledge about rationality of players, not only that of payoff functions. For this purpose, we use an … embedding belief systems, it is necessary that the upper bound order of mutual knowledge of payoff functions exceeds the upper …
Persistent link: https://www.econbiz.de/10003321328
We provide a tool to model and solve strategic situations where players' perceptions are limited, in the sense that they may only be aware of, or model, some of the aspects of the strategic situations at hand, as well as situations where players realize that other players' perceptions may be...
Persistent link: https://www.econbiz.de/10013098246
We show that a rational expectations equilibrium need not be incentive compatible, need not be implementable as a perfect Bayesian equilibrium and may not be fully Pareto optimal, unless the utility functions are state independent. A comparison of rational expectations equilibria with core...
Persistent link: https://www.econbiz.de/10009728179
Despite their importance, games with incomplete information and dependent types are poorly understood; only special cases have been considered and a general approach is not yet available. In this paper, we propose a new condition (named richness) for correlation of types in (asymmetric) Bayesian...
Persistent link: https://www.econbiz.de/10009660088