Perfect equilibria in games of incomplete information.

This paper extends Selten's (Int J Game Theory 4:25–55, 1975) notion of perfection to normal-form games of incomplete information and provides conditions on the primitives of a game that ensure the existence of a perfect Bayes–Nash equilibrium. The existence results, which allow for arbitrary (compact, metric) type and/or action spaces and payoff discontinuities, are illustrated in the context of all-pay auctions and Cournot games with incomplete information and cost discontinuities. [ABSTRACT FROM AUTHOR]