The paper presents an intuitive explanation of the Cho and Kreps’ (1987) Intuitive Criterion, and the Banks and Sobel’s (1987) Divinity Criterion (also referred as D1-Criterion). We provide multiple examples in which students can understand, step-by-step, the two main phases involved in these...

Abstract This paper provides a non-technical introduction to a procedure to find Perfect Bayesian equilibria (PBEs) in incomplete information games. Despite the rapidly expanding literature on industrial organization that uses PBE as its main solution concept, most undergraduate and graduate...