Cooperative theory with incomplete information
Abstract: This paper surveys cooperative game theory when players have incomplete or asymmetric information, especially when the TU and NTU games are derived from economic models. First some results relating balanced games and markets are summarized, including theorems guaranteeing that the core is nonempty. Then the basic pure exchange economy is extended to include asymmetric information. The possibilities for such models to generate cooperative games are examined. Here the core is emphasized as a solution, and criteria are given for its nonemptiness. Finally, an alternative approach is explored based on Harsanyi?s formulation of games with incomplete information.
Keywords: Game theory;
File(s): File format is application/pdf http://minneapolisfed.org/research/common/pub_detail.cfm?pb_autonum_id=717
Provider: Federal Reserve Bank of Minneapolis
Part of Series: Staff Report
Publication Date: 1996Order Number: 225