# Questions tagged [game-theory]

Game theory is a study of situations of strategic interaction between two or more players in which there is a predefined set of rules and an outcome associated with each choice taken.

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### Recommended readings on the determination of bargaining power

An example of a Nash bargain can be found in how the total surplus of employment is shared between the employer and the worker (wage bargaining). Assuming the share of total surplus to be gained by ...
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### Resolve Hold-Up Problems in Joint Investment

Say two agents jointly invest with a return function $f(i_1, i_2)$, which is increasing in both and concave, and they share the return by ratio $\beta_1$ and $1-\beta_1$. Then the result of investment ...
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### Coordination BNE

I don't have a lot of experience on BNE so this question got me stumped. Two player simultaneously have to decide whether to go to a movie, i.e. to Show up (S) or not (N). They prefer to go together, ...
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### Intuition of solution concepts in Non-cooperative games

I am now reading Nash's 1951 paper Non-cooperative games and I am trying to understand the intuition behind solution concepts. Solutions(Nash 1951) A game is solvable if its set $S$ of equilibrium ...
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### Symmetry of a game

I am now reading Nash's 1951 paper Non-cooperative games and I have a question about the definition of symmetry of a game. Symmetries of Games(Nash 1951) If two strategies belong to a single player ...
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### Is the following claim written with the right way?

I have a simple question though confusio for me. In game theory we usully write thet a strategy is a mapping from the set of types $T$ to the simplex set of actions (refering to mixed mixed strategies)...
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### Extension of Harsanyi Transform for Two-sided Incomplete Information Games to Beliefs with Zero Probability

In the textbook I'm reading "Game Theory - Giacomo Bonanno", one requirement to applying the Harsanyi transform to convert a two-sided incomplete information game to an imperfect information ...
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### Why does the belief over information sets with probability zero matter in Perfect Bayesian Equilibrium?

I'm struggling to understand why the notion of "belief revision" is an important concept. In particular, why does the belief over information sets with probability zero matter? When ...
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### Equivalence from correlated/communication equilibrium to Nash Equilibrium?

Taking into account the seminal papers of Forges and Imre Bárány, they proove a very strong result that gives an exact connection among the communication and the correlation equilibrium solution ...
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Let us suppose that we have a Bayesian game where the information structure is defined to be as $P^X=\{(X,\mathcal{X},P_\theta)\}_{\theta\in\Theta}$ where a signal generated by the information ...