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Playing for RealGame Theory$
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Ken Binmore

Print publication date: 2007

Print ISBN-13: 9780195300574

Published to Oxford Scholarship Online: May 2007

DOI: 10.1093/acprof:oso/9780195300574.001.0001

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 Knowing What to Believe

 Knowing What to Believe

(p.431) 15 Knowing What to Believe
Playing for Real

Ken Binmore (Contributor Webpage)

Oxford University Press

This chapter describes John Harsanyi's theory of so-called games of incomplete information using Poker as a motivating example. The chapter begins by analyzing a simplified version of Von Neumann's second Poker model. The general theory of incomplete information is then described. Russian Roulette and Cournot Duopoly with incomplete information about costs are used as examples. Harsanyi's purification of mixed strategies is briefly described. The finitely repeated Prisoner's Dilemma, in which the number of repetitions is not common knowledge, is given as an example with incomplete information about the rules of a game.

Keywords:   incomplete information, John Harsanyi, bluffing, Von Neumann's Poker model, Bayes-Nash equilibrium, Bayesian equilibrium, Russian Roulette, duopoly, agreeing to disagree, purification

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