7. An Example for Bayesian Nash Equilibrium: Lemons Problem (Game Theory Playlist 9)
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7. An Example for Bayesian Nash Equilibrium: Lemons Problem (Game Theory Playlist 9)
In this episode we describe another Bayesian game (lemons problem) and solve for the Nash equilibrium of this Bayesian game (aka Bayesian Nash equilibrium). In this game there are finitely many strategies and finitely many types (very much like the games we studied in episodes 3-5). However, the complication arises because the structure of ...
19.3K viewsNov 20, 2020
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