Characterization of equilibrium existence and purification in general Bayesian games
General Economics
2021-06-17 v1 Economics
Abstract
This paper studies Bayesian games with general action spaces, correlated types and interdependent payoffs. We introduce the condition of ``decomposable coarser payoff-relevant information'', and show that this condition is both sufficient and necessary for the existence of pure-strategy equilibria and purification from behavioral strategies. As a consequence of our purification method, a new existence result on pure-strategy equilibria is also obtained for discontinuous Bayesian games. Illustrative applications of our results to oligopolistic competitions and all-pay auctions are provided.
Keywords
Cite
@article{arxiv.2106.08563,
title = {Characterization of equilibrium existence and purification in general Bayesian games},
author = {Wei He and Xiang Sun and Yeneng Sun and Yishu Zeng},
journal= {arXiv preprint arXiv:2106.08563},
year = {2021}
}