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Network games with incomplete information

Joan de Martí Beltran and Yves Zenou
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Yves Zenou: GAINS - ARGUMANS - Atelier De Recherche En Gestion De L'université Du Mans - GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université

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Abstract: We consider a network game with strategic complementarities where the individual reward or the strength of interactions is only partially known by the agents. Players receive different correlated signals and they make inferences about other players' information. We demonstrate that there exists a unique Bayesian-Nash equilibrium. We characterize the equilibrium by disentangling the information effects from the network effects and show that the equilibrium effort of each agent is a weighted combinations of different Katz–Bonacich centralities.

Date: 2015-12
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Published in Journal of Mathematical Economics, 2015, 61, pp.221-240. ⟨10.1016/j.jmateco.2015.10.002⟩

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Journal Article: Network games with incomplete information (2015) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04329656

DOI: 10.1016/j.jmateco.2015.10.002

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