A Revelation Principle for (Boundedly) Bayesian Rationalizable Strategies
نویسنده
چکیده
The revelation principle is reconsidered in the light of recent work questioning its general applicability, as well as other work on the Bayesian foundations of game theory. Implementation in rationalizable strategies is considered. A generalized version of the revelation principle is proposed recognizing that, unless agents all have dominant strategies, the outcome of any allocation mechanism depends not only upon agents’ “intrinsic” types, but also upon their beliefs about other agents and their strategic behaviour. This generalization applies even if agents are “boundedly rational” in the sense of being Bayesian rational only with respect to bounded models of the game form.
منابع مشابه
A costly Bayesian implementable social choice function may not be truthfully implementable
The revelation principle is a fundamental theorem in many economics fields. In this paper, we construct a simple labor model to show that a social choice function which can be implemented costly in Bayesian Nash equilibrium may not be truthfully implementable. The key point is the strategy cost condition given in Section 4: In the direct mechanism, each agent only reports a type and will not pa...
متن کاملRevelation Principles in Multistage Games∗
We study the revelation principle in multistage games for perfect Bayesian equilibium and sequential equilibrium. The question of whether or not the revelation principle holds is subtle, as expanding players’ opportunities for communication expands the set of consistent beliefs at off-path information sets. In settings with adverse selection but no moral hazard, Nash, perfect Bayesian, and sequ...
متن کاملRationalizing Boundedly Rational Choice: Sequential Rationalizability and Rational Shortlist Methods
Rationalizing Boundedly Rational Choice: Sequential Rationalizability and Rational Shortlist Methods A sequentially rationalizable choice function is a choice function which can be obtained by applying sequentially a fixed set of asymmetric binary relations (rationales). A Rational ShortlistMethod (RSM) is a choice function which is sequentially rationalizable by two rationales. These concepts ...
متن کاملQuantum Bayesian implementation and revelation principle
Bayesian implementation concerns decision making problems when agents have incomplete information. This paper proposes that the traditional sufficient conditions for Bayesian implementation shall be amended by virtue of a quantum Bayesian mechanism. In addition, by using an algorithmic Bayesian mechanism, this amendment holds in the macro world. More importantly, we find that the revelation pri...
متن کاملRationalizability and Mixed Strategies in Large Games∗
We show that in large games with a finite set of actions in which the payoff of a player depends only on her own action and on an aggregate value that we call the (aggregate) state of the game, which is obtained from the complete action profile, it is possible to define and characterize the sets of (Point)Rationalizable States in terms of pure and mixed strategies. We prove that the (Point-)Rat...
متن کامل