CONGESTION MODELS AND WEIGHTED BAYESIAN POTENTIAL GAMES

Games associated with congestion situations a la Rosenthal (1973) have pure Nash equilibria. This result implicitly relies on the existence of a potential function. In this paper we provide a characterization o f potential games in terms of coordination games and dummy games. Seco nd, we extend Rosenthal's congestion model to an incomplete informatio n setting, and show that the related Bayesian games are potential game s and therefore have pure Bayesian equilibria.