复旦大学：Static（or Simultaneous-Move）Games of Incomplete Information-Lecture 4

Static (or Simultaneous- Move)Games of Incomplete Information-Lecture 4 Yongqin Wang, CCES,Fudan

Static (or Simultaneous￾Move) Games of Incomplete Information-Lecture 4 Yongqin Wang, CCES, Fudan

Outline of Static Games of Incomplete Information Introduction to static games of incomplete information Normal-form (or strategic-form) representation of static Bayesian games Bayesian Nash equilibrium ■Auction 2

2 Outline of Static Games of Incomplete Information  Introduction to static games of incomplete information  Normal-form (or strategic-form) representation of static Bayesian games  Bayesian Nash equilibrium  Auction

Today's Agenda What is a static game of incomplete information? Prisoners'dilemma of incomplete information Cournot duopoly model of incomplete information Battle of sexes of incomplete information ■First-price auction 3

3 Today’s Agenda  What is a static game of incomplete information?  Prisoners’ dilemma of incomplete information  Cournot duopoly model of incomplete information  Battle of sexes of incomplete information  First-price auction

Static (or simultaneous-move) games of complete information A set of players (at least two players) For each player,a set of strategies/actions Payoffs received by each player for the combinations of the strategies,or for each player,preferences over the combinations of the strategies All these are common knowledge among all the players. 4

4 Static (or simultaneous-move) games of complete information  A set of players (at least two players)  For each player, a set of strategies/actions  Payoffs received by each player for the combinations of the strategies, or for each player, preferences over the combinations of the strategies  All these are common knowledge among all the players

Static (or simultaneous-move) games of INCOMPLETE information Payoffs are no longer common knowledge ■ Incomplete information means that -At least one player is uncertain about some other player's payoff function(type) ■ Static games of incomplete information are also called static Bayesian games 5

5 Static (or simultaneous-move) games of INCOMPLETE information  Payoffs are no longer common knowledge  Incomplete information means that  At least one player is uncertain about some other player’s payoff function (type)  Static games of incomplete information are also called static Bayesian games