An extensive form interpretation of the private core
Dionysius Glycopantis (),
Allan Muir () and
Nicholas C. Yannelis ()
Additional contact information
Dionysius Glycopantis: City University
Allan Muir: City University
Nicholas C. Yannelis: University of Illinois
A chapter in Differential Information Economies, 2005, pp 593-618 from Springer
Abstract:
Summary The private core of an economy with differential information, (Yannelis (1991)), is the set of all state-wise feasible and private information measurable allocations which cannot be dominated, in terms of ex ante expected utility functions, by state-wise feasible and private information measurable net trades of any coalition. It is coalitionally Bayesian incentive compatible and also takes into account the information superiority of an individual. We provide a noncooperative extensive form interpretation of the private core for three person games. We construct game trees which indicate the sequence of decisions and the information sets, and explain the rules for calculating ex ante expected payoffs. In the spirit of the Nash programme, the private core is thus shown to be supported by the perfect Bayesian equilibrium of a noncooperative game. The discussion contributes not only to the development of ideas but also to the understanding of the dynamics of how coalitionally incentive compatible contracts can be realized.
Keywords: Differential information economy; Private core; Weak fine core; Coalitional Bayesian incentive compatibility; Game trees; Perfect Bayesian equilibrium; Contracts; Nash Programme (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations:
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:spr:steccp:978-3-540-26979-3_31
Ordering information: This item can be ordered from
http://www.springer.com/9783540269793
DOI: 10.1007/3-540-26979-7_31
Access Statistics for this chapter
More chapters in Studies in Economic Theory from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().