TY - JOUR
T1 - Garbling of signals and outcome equivalence
AU - Lehrer, Ehud
AU - Rosenberg, Dinah
AU - Shmaya, Eran
N1 - Funding Information:
We thank Christoph Kuzmics and Francoise Forges for very helpful discussions. Two anonymous referees and an Associate Editor of Games and Economic Behavior are particularly acknowledged for their comments, which greatly contributed to the improvement of the paper. Lehrer and Shmaya acknowledge the support of BSF Grant 2010253 .
PY - 2013
Y1 - 2013
N2 - In a game with incomplete information players receive stochastic signals about the state of nature. The distribution of the signals given the state of nature is determined by the information structure. Different information structures may induce different equilibria.Two information structures are equivalent from the perspective of a modeler, if they induce the same equilibrium outcomes. We characterize the situations in which two information structures are equivalent in terms of natural transformations, called garblings, from one structure to another. We study the notion of 'being equivalent to' in relation with three equilibrium concepts: Nash equilibrium, agent normal-form correlated equilibrium and the belief invariant Bayesian solution.
AB - In a game with incomplete information players receive stochastic signals about the state of nature. The distribution of the signals given the state of nature is determined by the information structure. Different information structures may induce different equilibria.Two information structures are equivalent from the perspective of a modeler, if they induce the same equilibrium outcomes. We characterize the situations in which two information structures are equivalent in terms of natural transformations, called garblings, from one structure to another. We study the notion of 'being equivalent to' in relation with three equilibrium concepts: Nash equilibrium, agent normal-form correlated equilibrium and the belief invariant Bayesian solution.
KW - Correlated equilibrium
KW - D820
KW - Garbling
KW - Incomplete information
KW - Information structure
KW - Robustness
UR - http://www.scopus.com/inward/record.url?scp=84879399184&partnerID=8YFLogxK
U2 - 10.1016/j.geb.2013.05.005
DO - 10.1016/j.geb.2013.05.005
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AN - SCOPUS:84879399184
SN - 0899-8256
VL - 81
SP - 179
EP - 191
JO - Games and Economic Behavior
JF - Games and Economic Behavior
IS - 1
ER -