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We study the robustness of interim correlated rationalizability to perturbations of higher-order beliefs. We introduce a new metric topology on the universal type space, called uniform weak topology, under which two types are close if they have similar first-order beliefs, attach similar...
Persistent link: https://www.econbiz.de/10014202241
Previous research has established that the predictions made by game theory about strategic behavior in incomplete information games are quite sensitive to the assumptions made about the players’ infinite hierarchies of beliefs. We evaluate the severity of this robustness problem by...
Persistent link: https://www.econbiz.de/10014165948