Maximum Likelihood Equilibria of Games with Population Uncertainty

Abstract

In the games with population uncertainty introduced in this paper, the number and identity of the participating players are determined by chance. Games with population uncertainty are shown to include Poisson games and random-player games. The paper focuses on those strategy profiles that are most likely to yield a Nash equilibrium in the game selected by chance. Existence of maximum likelihood equilibria is established under mild topological conditions.

Keywords: Incomplete information, population uncertainty, maximum likelihood equilibria

JEL Classification: C72