On the notion of perfect bayesian equilibrium

Often, perfect bayesian equilibrium is loosely defined by stating that players should be sequentially rational given some beliefs in which Bayes rule is applied whenever possible". We show that there are games in which it is not clear what whenever possible" means. Then, we provide a simple definition of perfect bayesian equilibrium for general extensive games that refines both weak perfect equilibrium and subgame perfect equilibrium.

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Year of publication:	2011
Authors:	González-Díaz, Julio ; Meléndez-Jiménez, Miguel A.
Publisher:	Evanston, IL : Northwestern University, Kellogg School of Management, Center for Mathematical Studies in Economics and Management Science
Subject:	non-cooperative game theory \| equilibrium concepts \| perfect bayesian \| Bayes rule

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Series:	Discussion Paper ; 1446
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	587664002 [GVK] hdl:10419/59628 [Handle] RePEc:nwu:cmsems:1446 [RePEc]
Classification:	C72 - Noncooperative Games
Source:	EconStor

Persistent link: https://www.econbiz.de/10010282887