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1、Static(orSimultaneous-Move)GamesofIncompleteInformationIntroductiontoStaticBayesianGamesJune19,2003173-347GameTheory--Lecture22OutlineofStaticGamesofIncompleteInformationIntroductiontostaticgamesofincompleteinformationNormal-form(orstrategic-form)representationofstaticBayesianga
2、mesBayesianNashequilibriumAuctionJune19,2003273-347GameTheory--Lecture22Today’sAgendaWhatisastaticgameofincompleteinformation?Prisoners’dilemmaofincompleteinformationCournotduopolymodelofincompleteinformationJune19,2003373-347GameTheory--Lecture22Static(orsimultaneous-move)games
3、ofcompleteinformationAsetofplayers(atleasttwoplayers)Foreachplayer,asetofstrategies/actionsPayoffsreceivedbyeachplayerforthecombinationsofthestrategies,orforeachplayer,preferencesoverthecombinationsofthestrategiesAllthesearecommonknowledgeamongalltheplayers.June19,2003473-347Gam
4、eTheory--Lecture22Static(orsimultaneous-move)gamesofINCOMPLETEinformationPayoffsarenolongercommonknowledgeIncompleteinformationmeansthatAtleastoneplayerisuncertainaboutsomeotherplayer’spayofffunction.StaticgamesofincompleteinformationarealsocalledstaticBayesiangamesJune19,200357
5、3-347GameTheory--Lecture22Prisoners’dilemmaofcompleteinformationTwosuspectsheldinseparatecellsarechargedwithamajorcrime.However,thereisnotenoughevidence.Bothsuspectsaretoldthefollowingpolicy:Ifneitherconfessesthenbothwillbeconvictedofaminoroffenseandsentencedtoonemonthinjail.Ifb
6、othconfessthenbothwillbesentencedtojailforsixmonths.Ifoneconfessesbuttheotherdoesnot,thentheconfessorwillbereleasedbuttheotherwillbesentencedtojailforninemonths.Prisoner2MumConfessPrisoner1Mum-1,-1-9,0Confess0,-9-6,-6June19,2003673-347GameTheory--Lecture22Prisoners’dilemmaofinco
7、mpleteinformationPrisoner1isalwaysrational(selfish).Prisoner2canberational(selfish)oraltruistic,dependingonwhetherheishappyornot.Ifheisaltruisticthenhepreferstomumandhethinksthat“confess”isequivalenttoadditional“fourmonthsinjail”.Prisoner1cannotknowexactlywhetherprisoner2isratio
8、naloraltruistic,buthebelievesthatprisoner2israt
