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Ehud Kalai: Learning, prediction and Stability in Bayesian Games

Abstract: Bayesian Nash equilibrium is stable if observed information about the play gives no player an incentive to deviate from the play. Unstable equilibria lead to unpredictable chaotic behavior, for example: significant price fluctuations in market games, unsettled positions in location games and unpredictable driving patterns in driving games. The presentation illustrates sufficient conditions for stability in one-shot Bayesian games and the type of stability that is obtained due to learning in Bayesian repeated games.

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Kalai, E, "Large robust games," Econometrica, 72(6):1631.1665, 2004.
Kalai, E. and E. Shmaya, "Learning and stability in population games," Northwestern University discussion paper, 2013
Kalai, E. and E. Shmaya, "Population games with uncertain fundamentals," Northwestern University discussion paper, 2014
Myerson, R.B., "Large Poisson games," Journal of Economic. Theory, 94(1):7.45, 2000.
Schmeidler, D, "Equilibrium points of nonatomic games," J. Statist. Phys., 7:295.300, 1973.
Sorin, Sylvain, "Merging, Reputation, and Repeated Games with Incomplete Information," Games and Economic Behavior, vol. 29(1-2), pages 274-308, 1999.