Nobel Prize Lecture

Advanced information on the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel 2005.

Nobel Prize Lecture, December 8, 2005

The paper studies Bayesian Games which are extended by adding pre-play communication. Let T be a Bayesian game with three or more players. The main result is that if players can send private messages to each other and make public announcements then every communication equilibrium outcome, q,...

In this paper I propose a general model of repeated strategic interaction with possibly private information, which is particulary suitable to study learning processes.

In the models of Young (1993a, b), boundedly rational individuals are recurrently matched to play a game, and they play myopic best replies to the recent history of play. It could therefore be an advantage to instead play a myiopic best reply to the myopic best reply, something boundedly...