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We develop a hierarchical Bayesian dynamic game for competitive inventory and pricing under incomplete information. Two firms repeatedly choose order quantities and prices while facing two layers of uncertainty: unknown market demand and…

Methodology · Statistics 2026-03-09 Debashis Chatterjee

We consider a ubiquitous scenario in the Internet economy when individual decision-makers (henceforth, agents) both produce and consume information as they make strategic choices in an uncertain environment. This creates a three-way…

Computer Science and Game Theory · Computer Science 2021-04-09 Yishay Mansour , Aleksandrs Slivkins , Vasilis Syrgkanis , Zhiwei Steven Wu

Evolutionary game theory classically investigates which behavioral patterns are evolutionarily successful in a single game. More recently, a number of contributions have studied the evolution of preferences instead: which subjective…

Computer Science and Game Theory · Computer Science 2015-05-27 Paolo Galeazzi , Michael Franke

In many multi-agent settings, participants can form teams to achieve collective outcomes that may far surpass their individual capabilities. Measuring the relative contributions of agents and allocating them shares of the reward that…

Machine Learning · Computer Science 2022-08-19 Daphne Cornelisse , Thomas Rood , Mateusz Malinowski , Yoram Bachrach , Tal Kachman

This paper will examine a model with many agents, each of whom has a different belief about the dynamics of a risky asset. The agents are Bayesian and so learn about the asset over time. All agents are assumed to have a finite (but random)…

General Finance · Quantitative Finance 2009-07-29 A. A. Brown , L. C. G. Rogers

Optimal behavior in (competitive) situation is traditionally determined with the help of utility functions that measure the payoff of different actions. Given an ordering on the space of revenues (payoffs), the classical axiomatic approach…

General Economics · Economics 2020-04-27 Stefan Rass

We study a Bayesian coordination game where agents receive private information on the game's payoff structure. In addition, agents receive private signals on each other's private information. We show that once agents possess these different…

Economics · Quantitative Finance 2015-01-06 Dominik Grafenhofer , Wolgang Kuhle

We propose a learning dynamics to model how strategic agents repeatedly play a continuous game while relying on an information platform to learn an unknown payoff-relevant parameter. In each time step, the platform updates a belief estimate…

Multiagent Systems · Computer Science 2023-11-02 Manxi Wu , Saurabh Amin , Asuman Ozdaglar

Auctions in which agents' payoffs are random variables have received increased attention in recent years. In particular, recent work in algorithmic mechanism design has produced mechanisms employing internal randomization, partly in…

Computer Science and Game Theory · Computer Science 2012-06-15 Shaddin Dughmi , Yuval Peres

The survey is concerned with the issue of information transmission from experts to non-experts. Two main approaches to the use of experts can be traced. According to the game-theoretic approach expertise is a case of asymmetric information…

Probability · Mathematics 2008-07-21 Irene Valsecchi

Game-theoretic interactions with AI agents could differ from traditional human-human interactions in various ways. One such difference is that it may be possible to simulate an AI agent (for example because its source code is known), which…

Computer Science and Game Theory · Computer Science 2024-03-21 Vojtech Kovarik , Caspar Oesterheld , Vincent Conitzer

Recommendation systems often face exploration-exploitation tradeoffs: the system can only learn about the desirability of new options by recommending them to some user. Such systems can thus be modeled as multi-armed bandit settings;…

Computer Science and Game Theory · Computer Science 2020-07-02 Gal Bahar , Omer Ben-Porat , Kevin Leyton-Brown , Moshe Tennenholtz

Zero-determinant strategies are memory-one strategies in repeated games which unilaterally enforce linear relations between expected payoffs of players. Recently, the concept of zero-determinant strategies was extended to the class of…

Optimization and Control · Mathematics 2022-09-07 Masahiko Ueda

This paper studies a dynamic information acquisition model with payoff externalities. Two players can acquire costly information about an unknown state before taking a safe or risky action. Both information and the action taken are private.…

Theoretical Economics · Economics 2022-07-08 Guo Bai

We study the problem of an agent continuously faced with the decision of placing or not placing trust in an institution. The agent makes use of Bayesian learning in order to estimate the institution's true trustworthiness and makes the…

Physics and Society · Physics 2024-02-06 Benedikt V. Meylahn , Arnoud V. den Boer , Michel Mandjes

We investigate how distorted, yet structured, beliefs can persist in strategic situations. Specifically, we study two-player games in which each player is endowed with a biased-belief function that represents the discrepancy between a…

Theoretical Economics · Economics 2020-06-30 Yuval Heller , Eyal Winter

Currently the Dempster-Shafer based algorithm and Uniform Random Probability based algorithm are the preferred method of resolving security games, in which defenders are able to identify attackers and only strategy remained ambiguous.…

Artificial Intelligence · Computer Science 2015-08-11 Hossein Khani , Mohsen Afsharchi

This work contains the mathematical exploration of a few prototypical games in which central concepts from statistics and probability theory naturally emerge. The first two kinds of games are termed Fisher and Bayesian games, which are…

Statistics Theory · Mathematics 2024-02-27 Jozsef Konczer

This paper examines games with strategic complements or substitutes and incomplete information, where players are uncertain about the opponents' parameters. We assume that the players' beliefs about the opponent's parameters are selected…

Theoretical Economics · Economics 2025-01-28 Joep van Sloun

I study a game of strategic exploration with private payoffs and public actions in a Bayesian bandit setting. In particular, I look at cascade equilibria, in which agents switch over time from the risky action to the riskless action only…

Theoretical Economics · Economics 2022-05-13 Aroon Narayanan