Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/150284
Authors: 
Bergemann, Dirk
Morris, Stephen
Year of Publication: 
2016
Citation: 
[Journal:] Theoretical Economics [ISSN:] 1555-7561 [Volume:] 11 [Year:] 2016 [Issue:] 2 [Pages:] 487-522
Abstract: 
A game of incomplete information can be decomposed into a basic game and an information structure. The basic game defines the set of actions, the set of payoff states the payoff functions and the common prior over the payoff states. The information structure refers to the signals that the players receive in the game. We characterize the set of outcomes that can arise in Bayes Nash equilibrium if players observe the given information structure but may also observe additional signals. The characterization corresponds to the set of (a version of) incomplete information correlated equilibria which we dub Bayes correlated equilibria. We identify a partial order on many player information structures (individual sufficiency) under which more information shrinks the set of Bayes correlated equilibria. This order captures the role of information in imposing (incentive) constraints on behavior.
Subjects: 
Correlated equilibrium
incomplete information
Bayes Nash equilibrium
Bayes correlated equilibrium
robust predictions
information structure
sufficiency
Blackwell ordering
JEL: 
C72
D82
D83
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Article

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