The aim of the paper is to compare the sensitivity of a government's fiscal policy and a central bank's monetary policy, which are in Nash equilibrium in the case of a non-cooperative game between the government and the central bank in Czechia, Hungary, and Romania. The analysis for each country...

Applying unawareness belief structures introduced in Heifetz, Meier, and Schipper (2013a), we develop Bayesian games with unawareness, define equilibrium, and prove existence. We show how equilibria are extended naturally from lower to higher awareness levels and restricted from higher to lower...

In classic game theory, agents use mixed strategies in the form of objective and probabilistically precise devices to conceal their actions. We introduce the larger set of probabilistically imprecise devices as strategies and study the consequences for the basic results of normal form games....

This paper presents a class of finite n x n bimatrix (2-player) games we coin Circulant Games. In Circulant Games, each player's payoff matrix is a circulant matrix, i.e.\ each row vector is rotated one element relative to the preceding row vector. We show that when the payoffs in the first row...

J. Harsanyi introduced structural polymorphism in game theory, that is, there are many possible agent types such as “low productivity” or high productivity” with corresponding probability but all operating under one behavioral type, strict rationality. In this paper, we introduce...

Bayesian equilibrium by iterative conjectures (BEIC) analyzes games with players forming their conjectures of what other players will do iteratively starting with first order uninformative conjectures (or prior distribution functions) and updating their conjectures iteratively with game...

It has long been established in the literature that the set of pure strategy Nash equilibria of any binary game of strategic complements among a set N of players can be seen as a lattice on the set of all subsets of N under the partial order defined by the set inclusion relation (⊆). If the...

We study the design of public information structures that maximize the probability of selecting a Pareto dominant equilibrium in symmetric (2 x 2) coordination games. Because the need to coordinate exposes players to strategic risk, we treat the designer as able to implement an equilibrium only...

Games in which players aim to guess a fraction or multiple p of the average guess are known as guessing games or (p-)beauty contests. In this note, we derive a full characterization of the set of rationalizable strategies and the set of pure strategy Nash equilibria for such games as a function...

This paper studies games with both strategic substitutes and strategic complements, and more generally, games with strategic heterogeneity (GSH). Such games may behave differently from either games with strategic complements or games with strategic substitutes. Under mild assumptions (on one or...