# Questions tagged [bayesian-game]

For questions about Bayesian games. These are strategic interactions when one or more players have incomplete information about other players. General topics of games with asymmetric information may use this tag.

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### Expected payoff calculation difficulty in the Bayesian environment of Bergemman and Morris

Suppose that we have two states of the world equally likely to occur, and say $\psi$ is the common prior of the state $\theta\in\Theta=\{G,B\}$. The types of the players are given by the following ...
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### Bayesian update in the beliefs about the signals

Suppose that we have tow states of the world $\omega_1$ and $\omega_2$, where $p(\omega_1)=p(\omega_1)=1/2$ and there are three different signals, $s_H,s_M,s_L$ that are equally likely to occur in ...
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### Information acquisition problem and desing of information

I am searching some details about the information acquisition problem. I want to understand what this is about and where can I find the beginning of this literature. I think this problem is some kind ...
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### Alternative way to calculate the symmetric BNE of the game

My problem. Consider the following auction for a single object. There are $n \geq 2$ bidders. They submit their bids simultaneously. The object is allocated to the player who submits the largest bid. ...
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### Job Market Signaling

My Solution is this Separating equilibrium High type worker chooses $e_H = e^* >0$ Low type worker chooses $e_L =0$ Firms believes that if education is $e^* >0$ then the worker is high type and ...
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### Rule for Number of Strategies in Bayesian Games

Is there a general rule for finding the number of strategies (denote as $S$) for each player in a Bayesian game? I think it's related to the number of types (denote as $T$) and the number of actions (...
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### Bayesian Nash Equilibrium in a Duopoly Cournot Competition

I am having a hard time to solve a Bayesian Nash equilibrium game in a duopoly cournot competition setting. So, I have two firms with given production quantities, let's say $q_1$ and $q_2$ (i.e., not ...
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### Find a separating perfect Bayesian equilibrium

Exercise Question 2, Chapter 28, Strategy: An Introduction to Game Theory 3rd Edition by Joel Watson In part (a) of the question, we have to check if any separating perfect Bayesian equilibrium ...
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### Strong sequential equilibria and the existence of others

I am working on the following game and I have to find all strong sequential equilibria here. I determined that here any belief derived from a fully mixed strategy gives a distribution (1/2, 1/2) over ...
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### Simultaneous vs Sequential Games [closed]

Is there a way to characterize the distinction between simultaneous vs sequential games? I'm trying to describe a situation where players can only take actions without knowledge of other players' ...
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### How to find an optimal strategy in an auction?

I have asked this question in mathematics forum as well but since I have not recieved an appropriate answer yet, I ask it here as well. Consider an auction of sculptures by four artists: A, B, C and D....
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### What does 'continuation' as in continuation games, strategies, plays, etc. exactly mean?

I am in my first course in grad level game theory. While I was reading through Fudenberg and Tirole's Game Theory, I constantly come into contact with the word 'continuation' to describe some games ...
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### Find a Perfect Bayesian Equilibrium with a game that includes Nature

I want to determine all pure-strategy Perfect Bayesian Equilibria for this task, but I cannot get very far. Side note: First number is payoff for A, second number payoff for player B. For the last ...
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### Exchange Houses game - Bayesian Game

Can anyone help me understand how to solve this type of asymmetric information Bayesian game? So the game is a different version of the Tadelis 'trading house games'. It involves 2 players that each ...
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### Mixed Strategy Bayesian Nash Equilibrium

There was an exercise question regarding two players with two types each in a game theory class. The two players were assigned to do a team project together. The utility from doing the team project is ...
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### Mixed Strategies in Bayes Nash Equilibrium (Bayesian Battle of the Sexes). Shouldn't it depend on $p$?

I have a question about calculating mixed strategies in a Bayes Nash Equilibrium in a simple 2-player bimatrix game. To demonstrate the issue, consider Bayesian Battle of the Sexes.'' Suppose P1 ...
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### I cannot understand Sobel & Crawford 1982 (cheap talk)

I am a master student, currently reading this paper for fun during the break. I got lost during the part $U^S(\bar y, \bar m, b) = \max_{y \in Y} U^S(y,\bar m, b)$ on page 5. I dont understand why ...
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### Pooling equilibrium in akerlof's lemon market with certification cost

Consider a market for 300 used cars where 1/3 of all cars are good quality cars and the rest are bad quality cars. All these cars are owned by (potential) sellers to begin with and each seller owns ...
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### Find a perfect Bayesian equilibrium

Each of two sellers, $1$ and $2$ owns one indivisible object that a buyer would like to buy. The two objects are identical. The buyer´s valuation depends on the number of objects he gets. The ...
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### Pure-Strategy Bayesian Nash equilibrium with general common prior

I'm doing a problem set on the subject of Bayesian Nash equilibrium. I'm asked to find the pure-strategy BNE of the following. I've calculated to matrix shown below. My first concern is if I've ...
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### Blackwell order of information structures

Consider a model where a decision maker (DM) has to choose action $y\in \mathcal{Y}$ possibly without being fully aware of the state of the world. The state of the world has support $\mathcal{V}$. ...
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### Perfect Bayesian Equilibrium for banks

I'm reading this paper on credit lending cycles and trying to understand how it works for the case of one bank. This is the set-up of the model: There are two players, a bank and the market. There ...
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### How to prove the WPBE is SE in signaling game?

The definition of a signaling game: A signaling game is an extensive game with the following structure: (i) A move of chance first determines a state of the world/type $t ∈ T$, which is drawn from T ...
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### First Price Auction (Expected Payoff)

I'm trying to solve followed first-price auction problem. Bidder's pdf is  f(v_i)= \begin{cases} \dfrac{1}{8}v_i, & \text{if} & 0\leq v_i\leq4\\ 0, & \text{if} & \text{otherwise}\\ ...
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### Some basic questions on infromation asymmetry

How does asymmetric information and bid-ask spread are connected? For instance, economic theory tells us that, the more the problem of information asymmetry, the higher the spread is. What is the ...