Eguia, Jon X.; Llorente-Saguer, Aniol; Morton, Rebecca; … - School of Economics and Finance, Queen Mary - 2014
Games with imperfect information often feature multiple equilibria, which depend on beliefs off the equilibrium path. Standard selection criteria such as <i>passive beliefs, symmetric beliefs or wary beliefs</i> rest on ad hoc restrictions on beliefs. We propose a new selection criterion that imposes...