Equilibrium in Non-partitioning Strategies

Herein we present a single example with three purposes: (1) to show the existence of equilibria in a game which violates the assumptions of currently available general existence theorems; (2) to illustrate the importance of the "affiliation" assumption in economic games of incomplete information, by showing how even a slight relaxation can lead to the nonexistence of equilibria in monotone strategies; and, most importantly, (3) to exhibit an equilibrium point in strategies which partially reveal information without inducing posterior partitionings of the players′ type spaces. Journal of Economic Literature Classification Numbers: C72.