Epistemic Conditions for Bayesian Equilibrium

Christian W. Bach; Andres Perea

doi:10.4204/EPTCS.379.1

Epistemic Conditions for Bayesian Equilibrium

Christian W. Bach^*, Andres Perea

^*Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceeding › Academic › peer-review

Abstract

Bayesian equilibrium constitutes the prevailing solution concept for games with incomplete information. It is known that from an ex-ante perspective Harsanyi's seminal notion is related both to Nash equilibrium as well as to canonical correlated equilibrium. We provide an epistemic characterization of Bayesian equilibrium from an interim perspective by means of common belief in rationality and a common prior. Since these epistemic conditions also characterize correlated equilibrium in the special case of complete information, our result substantiates that Bayesian equilibrium forms the incomplete information analogue to correlated equilibrium - and not to Nash equilibrium - in terms of reasoning.

Original language	English
Title of host publication	ELECTRONIC PROCEEDINGS IN THEORETICAL COMPUTER SCIENCE (EPTCS 379)
Subtitle of host publication	Proceedings Nineteenth conference on Theoretical Aspects of Rationality and Knowledge Oxford, United Kingdom, 28-30th June 2023
Publisher	Open Publishing Association
Pages	1-1
Number of pages	1
Edition	379
DOIs	https://doi.org/10.4204/EPTCS.379.1
Publication status	E-pub ahead of print - 2023
Event	19th Conference on Theoretical Aspects of Rationality and Knowledge - Worcester College, University of Oxford, United Kingdom Duration: 28 Jun 2023 → 30 Jun 2023 Conference number: 19 https://sites.google.com/view/tark-2023

Conference

Conference	19th Conference on Theoretical Aspects of Rationality and Knowledge
Abbreviated title	TARK-2023
Country/Territory	United Kingdom
Period	28/06/23 → 30/06/23
Internet address	https://sites.google.com/view/tark-2023

Access to Document

10.4204/EPTCS.379.1Licence: CC BY-NC-ND

Cite this

Bach, C. W., & Perea, A. (2023). Epistemic Conditions for Bayesian Equilibrium. In ELECTRONIC PROCEEDINGS IN THEORETICAL COMPUTER SCIENCE (EPTCS 379): Proceedings Nineteenth conference on Theoretical Aspects of Rationality and Knowledge Oxford, United Kingdom, 28-30th June 2023 (379 ed., pp. 1-1). Open Publishing Association. Advance online publication. https://doi.org/10.4204/EPTCS.379.1

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Bach, CW & Perea, A 2023, Epistemic Conditions for Bayesian Equilibrium. in ELECTRONIC PROCEEDINGS IN THEORETICAL COMPUTER SCIENCE (EPTCS 379): Proceedings Nineteenth conference on Theoretical Aspects of Rationality and Knowledge Oxford, United Kingdom, 28-30th June 2023. 379 edn, Open Publishing Association, pp. 1-1, 19th Conference on Theoretical Aspects of Rationality and Knowledge, United Kingdom, 28/06/23. https://doi.org/10.4204/EPTCS.379.1

Epistemic Conditions for Bayesian Equilibrium. / Bach, Christian W.; Perea, Andres.
ELECTRONIC PROCEEDINGS IN THEORETICAL COMPUTER SCIENCE (EPTCS 379): Proceedings Nineteenth conference on Theoretical Aspects of Rationality and Knowledge Oxford, United Kingdom, 28-30th June 2023. 379. ed. Open Publishing Association, 2023. p. 1-1.

Research output: Chapter in Book/Report/Conference proceeding › Conference article in proceeding › Academic › peer-review

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AB - Bayesian equilibrium constitutes the prevailing solution concept for games with incomplete information. It is known that from an ex-ante perspective Harsanyi's seminal notion is related both to Nash equilibrium as well as to canonical correlated equilibrium. We provide an epistemic characterization of Bayesian equilibrium from an interim perspective by means of common belief in rationality and a common prior. Since these epistemic conditions also characterize correlated equilibrium in the special case of complete information, our result substantiates that Bayesian equilibrium forms the incomplete information analogue to correlated equilibrium - and not to Nash equilibrium - in terms of reasoning.

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