Definition of static Bayesian game Assignment Help

Assignment Help: >> Bayesian Nash Equilibrium - Normal-Form Representation - Definition of static Bayesian game

Definition:

We now want to define an equilibrium concept for static Bayesian games. To do so, we must first define the players' strategy spaces in such a game. Given the timing  of  a  static Bayesian game,  in  which nature begins the game  by drawing the players' types,  a  (pure) strategy for player  i  must  specifL a feasible action for each of player i's possible types.

Definition: In  the static Bayesian game

104_Definition of static Bayesian game.png, a strategy for player i  is a function s,(t,),  where for each type t,  in T,,  s,(t,)  specifies  the action form the feasible set A,  that type t, would choose if drawn by  nature.

Definition: In a separating strategy each type ti  in Ti  chooses a different action a,  from Ai.

Definition: In a pooling strategy all types choose the same action.

Definition: In  the static Bayesian game

104_Definition of static Bayesian game.png ,  the strategies

993_Definition of static Bayesian game1.png

  are (pure strategyj Bayesian Nash equilibrium if for each player i and for each of i's  types t, in Ti, s*i(ti)  solves

1535_Definition of static Bayesian game2.png

That  is, no  player wants  to  change  her  strategy, even  if  thi change involves only one action by  one type.

It can  be  shown that  in  a  finite static Bayesian game there exists a Bayesian Nash equilibrium, perhaps in mixed strategies.

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