Skip to main content
SpringerLink
Log in

On extensive form implementation of equilibria in differential information economies

  • Chapter
Advances in Mathematical Economics

Part of the book series: Advances in Mathematical Economics ((MATHECON,volume 8))

  • 863 Accesses

Abstract

We investigate the possibility of a dynamic explanation of the equilibrium ideas in terms of the perfect Bayesian equilibrium (PBE) (or sequential equilibrium). In particular, we take an equilibrium outcome which has been found by means of a static optimizing behavior and ask the following question. Can this outcome be supported, (or implemented), as a PBE of an extensive form game of a reasonable form? We provide a positive answer for solution concepts which are incentive compatible and a negative one for those which are not.

We are very grateful to A. Hadjiprocopis for his invaluable help and suggestions.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 129.00
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Allen, B.: Generic existence of completely revealing equilibria with uncertainty, when prices convey information. Econometrica 49, 1173–1199 (1981)

    Article  MATH  MathSciNet  Google Scholar 

  2. Dubey, P., Geanakoplos, J., Shubik, M.: The revelation of information in strategic market games: A critique of rational expectations equilibrium. Journal of Mathematical Economics 16, 105–138 (1987)

    Article  MATH  MathSciNet  Google Scholar 

  3. Glycopantis, D., Muir, A., Yannelis, N.C.: An extensive form interpretation of the private core. Economic Theory 18, 293–319 (2001)

    Article  MATH  MathSciNet  Google Scholar 

  4. Glycopantis, D., Muir, A., Yannelis, N.C.: On extensive form implementation of contracts in differential information economies. Economic Theory 21, 495–526 (2003)

    Article  MATH  MathSciNet  Google Scholar 

  5. Glycopantis, D., Yannelis, N.C., (eds.): Differential Information Economies. Studies in Economic Theory 19. Springer-Verlag, Berlin-Heidelberg 2005a

    Google Scholar 

  6. Glycopantis, D., Muir, A., Yannelis, N.C.: On a non-revealing rational expectations equilibrium. Mimeo (2005b)

    Google Scholar 

  7. Glycopantis, D., Muir, A., Yannelis, N.C.: Non-implementation of rational expectations as a perfect Bayesian equilibrium. Economic Theory (forthcoming)

    Google Scholar 

  8. Hahn, G., Yannelis, N.C.: Coalitional Bayesian Nash implementation in differential information economies. Economic Theory, 18, 485–509 (2001)

    Article  MATH  MathSciNet  Google Scholar 

  9. Ichiishi, T., Yamazaki, A.: Preliminary results for cooperative extensions of the Bayesian game. Discussion paper, Graduate School of Economics, Hitotsubashi University, 1–89 (2001–2)

    Google Scholar 

  10. Krasa, S., Yannelis, N.C.: Existence and properties of a value allocation for an economy with differential information. Journal of Mathematical Economics 25, 165–179 (1996)

    Article  MATH  MathSciNet  Google Scholar 

  11. Koutsougeras, L., Yannelis, N.C.: Incentive compatibility and information superiority of the core of an economy with differential information. Economic Theory 3, 195–216 (1993)

    Article  MATH  MathSciNet  Google Scholar 

  12. Kreps, M.D., Wilson, R.: Sequential equilibrium. Econometrica 50, 889–904 (1982)

    Article  MathSciNet  Google Scholar 

  13. Kuhn, H.W.: Extensive games and the problem of information. In: Contributions to the Theory of Games, II (H.W. Kuhn, A.W. Tucker eds.). Annals of Mathematical Studies 28, pp.193–216 Princeton University Press, Princeton 1958

    Google Scholar 

  14. Radner, R.: Competitive equilibrium under uncertainty. Econometrica 36, 31–58 (1968)

    Article  MATH  Google Scholar 

  15. Radner, R.: Rational expectation equilibrium: Generic existence and information revealed by prices. Econometrica 47, 655–678 (1979)

    Article  MATH  MathSciNet  Google Scholar 

  16. Scafuri, A.J., Yannelis, N.C.: Non-symmetric cardinal value allocations. Econometrica 52, 1365–1368 (1984)

    Article  MATH  MathSciNet  Google Scholar 

  17. Shapley, L.S.: A value for n-person games. In: Contributions to the Theory of Games, II (H.W. Kuhn, A.W. Tucker eds.). Annals of Mathematical Studies 28, pp.307–316 Princeton University Press, Princeton 1953

    Google Scholar 

  18. Yannelis, N.C.: The core of an economy with differential information. Economic Theory 1, 183–198 (1991)

    Article  MATH  MathSciNet  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Economics, City University, Northampton Square, London, EC1V 0HB, UK

    Dionysius Glycopantis

  2. Department of Mathematics, City University, Northampton Square, London, EC1V 0HB, UK

    Allan Muir

  3. Department of Economics, University of Illinois at Urbana-Champaign, IL, 61820, USA

    Nicholas C. Yannelis

Authors
  1. Dionysius Glycopantis
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Allan Muir
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Nicholas C. Yannelis
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Graduate School of Mathematical Sciences, University of Tokyo, 3-8-1 Komaba, Meguro-ku, Tokyo, 153-0041, Japan

    Shigeo Kusuoka (Professor) (Professor)

  2. Graduate Faculty of Economics, Hitotsubashi University, Kunitachi, Tokyo, 186-8601, Japan

    Akira Yamazaki (Professor) (Professor)

Rights and permissions

Reprints and permissions

Copyright information

© 2006 Springer-Verlag

About this chapter

Cite this chapter

Glycopantis, D., Muir, A., Yannelis, N.C. (2006). On extensive form implementation of equilibria in differential information economies. In: Kusuoka, S., Yamazaki, A. (eds) Advances in Mathematical Economics. Advances in Mathematical Economics, vol 8. Springer, Tokyo. https://doi.org/10.1007/4-431-30899-7_7

Download citation

Publish with us

Policies and ethics

Search

Navigation