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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.
4
votes
Accepted
Alternative way to calculate the symmetric BNE of the game
There is another way to compute the symmetric BNE in increasing strategy.
Let $U(v)$ denote the expected utility of a player in equilibrium when his type is $v$: Given that the bidding strategy is in …
4
votes
Accepted
Find a perfect Bayesian equilibrium
In the second period, the buyer accepts any offer $s_{2}$ $\leq$ $0.7$ if he has rejected the first offer and any offer $s_{2}$ $\leq$ $0.3$ if he has accepted the first offer.
Given this, there are o …