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Class_12 - Econ171Introductionto GameTheory Lecture 12...

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Econ 171 – Introduction to  Game Theory Lecture 12
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The role of information Today Incomplete vs. Imperfect information Bayesian games of incomplete information Bayesian Nash Equilibrium Tuesday More Bayesian games Risk The Principle-Agent problem Wednesday Auctions
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What is incomplete information? Consider a variant of the BoS game. Player 1 wants to meet Player 2 but is unsure what “type” of person Player 2 is- thinks both types have equal probability. Player 2 knows their own type and 1’s preferences.
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What is incomplete information? Guess Player 1’s best contingent strategy. a) O b) B c) ?
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What is incomplete information? Guess Player 2’s best contingent strategy. a) O in both cases b) O in the first, B in the second c) B in the first, O in the second d) B in both cases
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What is incomplete information? “Nature” generates type probabilities; in this case, with a coin toss. Result…
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Incomplete vs. imperfect information We saw many examples of imperfect information so far, e.g. all simultaneous games, or a sequential games where a player is unsure of their position on the game tree. One player doesn’t observe the others’ actions.
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Incomplete vs. imperfect information
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Class_12 - Econ171Introductionto GameTheory Lecture 12...

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