Pure strategy equilibria in games with private and public information

Abstract

We introduce a new game form which allows the players' strategies to depend on their strategy-relevant private information as well as on some publicly announced information. The players' payoffs depend on their own payoff-relevant private information and some payoff-relevant common information. Under the assumption that the players' strategy-relevant private information is diffuse and their private information is conditionally independent given the public and payoff-relevant common information, we prove the existence of a pure strategy equilibrium for such a game by developing a distribution theory of correspondences via vector measures.©2006 Elsevier B.V. All rights reserved.