Static Games of Incomplete Information and Mechanism Design

(Bayesian Nash equilibrium and adverse selection)

Bayesian Nash equilibrium

One sided "battle of the sexes"

Here's the Gambit solution [.jpeg] for this problem as discussed in class. The Bayesian Nash equilibrium is (S,SB); man goes to Soccer, and woman goes to Soccer if she likes him; otherwise she goes to Ballet.

Cournot game with incomplete information

Maple [.pdf]

Competing newsvendors with incomplete information

Maple  [.pdf]

Adverse selection

Maple [.pdf]