A number of papers have shown that a strict Nash equilibrium action profile of a game may never be played if there is a small amount of incomplete information. The authors present a general approach to analyzing the robustness of equilibria to a small amount of incomplete information. A Nash...

'No trade' theorems have shown that new information will not lead to trade when agents share the same prior beliefs. This paper explores the structure of no trade theorems with heterogeneous prior beliefs. It is shown how different notions of efficiency under asymmetric information--ex ante,...

This paper elucidates on the logic behind recent papers which show that a unique equilibrium is selected in the presence of higher order uncertainty, i.e., when players lack common knowledge. We introduce two new concepts: stochastic potential of the information system and p-dominance of...

The mechanism design literature assumes too much common knowledge of the environment among the players and planner. We relax this assumption by studying mechanism design on richer type spaces. Copyright The Econometric Society 2005.