Abstract
Sufficient conditions for Nash equilibrium in an n-person game are given in terms of what the players know and believe-about the game, and about each other's rationality, actions, knowledge, and beliefs. Mixed strategies are treated not as conscious randomizations, but as conjectures, on the part of other players, as to what a player will do. Common knowledge plays a smaller role in characterizing Nash equilibrium than had been supposed. When n = 2, mutual knowledge of the payoff functions, of rationality, and of the conjectures implies that the conjectures form a Nash equilibrium. When n ≥ 3 and there is a common prior, mutual knowledge of the payoff functions and of rationality, and common knowledge of the conjectures, imply that the conjectures form a Nash equilibrium. Examples show the results to be tight.
| Original language | English |
|---|---|
| Title of host publication | The Language of Game Theory |
| Subtitle of host publication | Putting Epistemics into the Mathematics of Games |
| Editors | Adam Brandenburger |
| Publisher | World Scientific |
| Pages | 113-136 |
| Number of pages | 24 |
| ISBN (Electronic) | 9789814513456, 9814513458 |
| DOIs | |
| State | Published - 1 Sep 2023 |
Publication series
| Name | World Scientific Series in Economic Theory |
|---|---|
| Volume | 5 |
| ISSN (Print) | 2251-2071 |
Bibliographical note
Publisher Copyright:© 2014 World Scientific Publishing Co. Pte. Ltd.
Keywords
- belief
- belief systems
- common knowledge
- common prior
- conjectures
- epistemic conditions
- equilibrium
- Game theory
- interactive belief systems
- knowledge
- mixed strategies
- mutual knowledge
- Nash equilibrium
- rationality
- strategic equilibrium
- strategic games
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Epistemic conditions for Nash equilibrium
Aumann, R. & Brandenburger, A., 1995, In: Econometrica. 63, 5, p. 1161-1180 20 p.Research output: Contribution to journal › Article › peer-review
518 Scopus citations
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