Perfect bayesian equilibrium in Kuhn poker
Date
2023-10
Authors
Diez, Juan Cruz
Loriente, Martín Iñaki
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Quesada, Lucía
Ruzzier, Christian
Journal Title
Journal ISSN
Volume Title
Publisher
Universidad de San Andrés. Departamento de Economía
Abstract
In 1950, Harold W. Kuhn introduced a simplified version of poker
referred to as Kuhn Poker and solved it using the notion of Nash Equilibrium. His
pioneering work inspired subsequent scholars who applied similar methodologies
to other poker versions. In contrast, we adopt a different procedure by employing
Harsanyi’s approach to reach a Perfect Bayesian Equilibrium (PBE), a concept
that emerged two decades after Kuhn’s original solutions. While computational
techniques have greatly advanced the analysis of various poker variations, achieving
a PBE remains elusive. Some studies suffer from methodological flaws, as they
overlook the importance of incorporating beliefs into their analysis. In our research,
we also conducted a rationality study and found that relaxing the sophistication
of a player leads to a shift in optimal strategies towards more exploitative ones.
Description
Fil: Diez, Juan Cruz. Universidad de San Andrés. Departamento de Economía; Argentina.
Fil: Loriente, Martín Iñaki. Universidad de San Andrés. Departamento de Economía; Argentina.
Fil: Loriente, Martín Iñaki. Universidad de San Andrés. Departamento de Economía; Argentina.