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Characterization of equilibrium existence and purification in general Bayesian games

2021-06-16 · wei he, Xiang Sun, Yeneng Sun, Yishu Zeng

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.

📄 PDF Abstract BibTeX arXiv:2106.08563

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