G601, IO I

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• G601, IO I
• Eric Rasmusen, erasmuse_at_indiana.edu
• 31 August 2006
• 2 Info
• This is for one 75 minute session on the
  chapter. The big idea is bayesian equilibrium.

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Readings

31 August, Thursday Information Chapter 2, Games
and Information. Due 5PM Saturday Sept 2 The
HTML project. 5 September, Tuesday. Due
Problem Set 1 1.1, 1.11, 2.3, 2.5.
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Handouts

• Cardstock and pen for name plate
• REMINDERS
• Pictures today
• Do PS 1 for Tuesday
• If you want a problem partner, email me.
• Do HTML page for Saturday 5pm
• NEW If you DO have a problem set partner,
  please email and tell me.

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Definitions

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What if Jones does not know which of these three
games he is playing?--he does have guesses of
probabilitiessubjective probabilities---of
70, 10 20

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This is the Harsanyi Transformation. A game of
incomplete information

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sdfsd

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That is Bayes Rule. I will derive it on the
board.
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sdfsd
From the previous page

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sdfsd
From the previous page

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• Use the three step procedure.
• Propose an equilibrium.
• What beliefs are generated?
• Would anyone deviate?

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sdfsd
From the previous page

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Bayes Rule
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sdfsd
(From the previous page)

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Joness Strategy if Smith Chooses Small
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Bayes Rule
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(No Transcript)
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Course Website

• A link to the course website
• http//www.rasmusen.org/g601/0.g601.htm

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The Battle of the Sexes