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J4  2011, Vol. 8 Issue (2): 306-    DOI:
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Development of Nash Equilibria of Biform Games Based on Degree of Common Knowledge
 TAN Wei, TAN De-Qing
Southwest Jiaotong University, Chengdu, China

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Abstract  

The paper firstly develops the general strategies of biform games, proposes the concept of common knowledge Nash equilibrium (CKNE), and then presents the proof of its existence. The paper proposes other three forms of equilibriaalmost common knowledge Nash equilibrium(ACKNE), part Common knowledge Nash equilibrium(PCKNE) and part almost common knowledge Nash equilibrium(PACKNE), and gives some examples. It also analyzes the efficiencies of different equilibria. Research results show that the distribution of benefit in CKNE is partly decided by the information itselfa special form of competition environment, and it is efficient. The efficiency of three other forms of equilibria is lower than CKNE, but still higher than Nash equilibrium(NE) of biform games. The four developed forms of biform games’ equilibria can provide methods and theoretical explanation for organizing more efficient cooperation.

Key wordsbiform games      cooperative game      common knowledge      common knowledge Nash equilibrium     
Received: 30 July 2009     
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TAN Wei
TAN De-Qing
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TAN Wei,TAN De-Qing. Development of Nash Equilibria of Biform Games Based on Degree of Common Knowledge[J]. J4, 2011, 8(2): 306-.
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http://manu68.magtech.com.cn/Jwk_glxb/EN/     OR     http://manu68.magtech.com.cn/Jwk_glxb/EN/Y2011/V8/I2/306
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