Introduction This lecture presents the two main contributions of \interactive epistemology\to thethe- ory of normal-form games: a characterization of Nash equilibrium beliefs, and a full (i.e behavioral) characterization of rationalizability a review of the basic definitions For your convenience, I summarize the essential definitions pertaining to models of interactive
Introduction The purpose of this lecture is to help you familiarize with the workings of sequential equi- librium and \sequential equilibrium lite, i.e. perfect Bayesian equilibrium. The main focus is the \reputation\ result of Kreps and Wilson(1982). You should refer to OR for details and definitions: I am following the textbook quite closely. of the game in which an incumbent faces a sequence of K (potential) entrants. It is clear that, in the subgame in which the last entrant gets a chance to play, the incumbent will
Introduction By and large, I will follow OR, Chapters 1l and 12, so I will keep these notes to a minimum. J Games with observed actions and payoff uncertainty Not all dynamic models of strategic interaction fit within the category of games with observed actions we have developed in the previous lectures. In particular, no allowance was made for payoff uncertainty
Introduction By and large, I will follow OR, Chap. 8, so I will keep these notes to a minimum. ] The theory of repeated games is a double-edged sword. On one hand, it indicates how payoff profiles that are not consistent with Nash equilibrium in a simultaneous-move game might be achieved when the latter is played repeatedly, in a manner consistent with Nash or even subgame-perfect equilibrium On the other hand, it shows that essentially every individually rational payoff profile can
Logistics We(provisionally) meet on Tuesdays and Thursdays 10: 40a-12: 10p, in Bendheim 317. I will create a mailing list for the course. Therefore please send me email at your earliest convenience so I can add you to the list. You do not want to miss important announcements, do you? the course has a web page at http://www.princeton.edw
