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We study the robustness of interim correlated rationalizability to perturbations of higher-order beliefs. We introduce …
Persistent link: https://www.econbiz.de/10011695239
We define and analyze a "strategic topology'' on types in the Harsanyi-Mertens-Zamir universal type space, where two types are close if their strategic behavior is similar in all strategic situations. For a fixed game and action define the distance between a pair of types as the difference...
Persistent link: https://www.econbiz.de/10011703019
The standard framework for analyzing games with incomplete information models players as if they have an infinite depth of reasoning, which is not always consistent with experimental evidence. This paper generalizes the type spaces of Harsanyi (1967-1968) so that players can have a finite depth...
Persistent link: https://www.econbiz.de/10009782099
This paper proposes the solution concept of interim correlated rationalizability, and shows that all types that have …
Persistent link: https://www.econbiz.de/10011702628
In an important paper, Weinstein and Yildiz (2007) show that if players have an infinite depth of reasoning and this is commonly believed, types generically have a unique rationalizable action in games that satisfy a richness condition. We show that this result does not extend to environments...
Persistent link: https://www.econbiz.de/10010221860
Persistent link: https://www.econbiz.de/10011920082
Rationalizability is a central concept in game theory. Since there may be many rationalizable strategies, applications …
Persistent link: https://www.econbiz.de/10011855899
from introspection (in the spirit of rationalizability). I provide an epistemic definition of RCE and obtain a …
Persistent link: https://www.econbiz.de/10011686678
Applying unawareness belief structures introduced in Heifetz, Meier, and Schipper (2013a), we develop Bayesian games with unawareness, define equilibrium, and prove existence. We show how equilibria are extended naturally from lower to higher awareness levels and restricted from higher to lower...
Persistent link: https://www.econbiz.de/10010240317
We define a generalized state-space model with interactive unawareness and probabilistic beliefs. Such models are desirable for many potential applications of asymmetric unawareness. We develop Bayesian games with unawareness, define equilibrium, and prove existence. We show how equilibria are...
Persistent link: https://www.econbiz.de/10010365853