González-Díaz, Julio; Meléndez-Jiménez, Miguel - In: TOP: An Official Journal of the Spanish Society of … 22 (2014) 1, pp. 128-143
Often, perfect Bayesian equilibrium is loosely defined by stating that players should be sequentially rational given some beliefs in which Bayes rule is applied “whenever possible.” We argue that there are situations in which it is not clear what “whenever possible” means. Then we...