Template-Type: ReDIF-Paper 1.0
Author-Name: Loriente Martín Iñaki
Author-Name-First: Martín Iñaki
Author-Name-Last: Loriente
Author-Name: Diez Juan Cruz
Author-Name-First: Juan Cruz
Author-Name-Last: Diez
Title: Perfect Bayesian Equilibrium in Kuhn Poker
Abstract: In 1950, Harold W. Kuhn introduced a simplified poker variant 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 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.
Length:  16 pages
Creation-Date:  2024-11
File-URL: https://aaep.org.ar/works/works2024/4742.pdf
File-Format: Application/pdf
Number: 4742
Classification-JEL: C7, D8
Handle: RePEc:aep:anales:4742