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unique rationalizable action. This paper studies how a wide class of departures from common belief in rationality impact … attach to (n- 1)th-order belief in rationality. We find that Weinstein and Yildiz's discontinuity remains when λn is above an … appropriate threshold for all n, but fails when λn converges to 0. That is, if players' confidence in mutual rationality persists …
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This paper proposes the solution concept of interim correlated rationalizability, and shows that all types that have … characterizes common certainty of rationality in the universal type space. …
Persistent link: https://www.econbiz.de/10011702628
Epistemic game theory formalizes assumptions about rationality and mutual beliefs in a formal language, then studies … their behavioral implications in games. Specifically, it asks: what do different notions of rationality and different … assumptions about what players believe about…what others believe about the rationality of players imply regarding play in a game …
Persistent link: https://www.econbiz.de/10014025447
rationality and eliminate all strategies which are not rationalizable. Second, I apply the maximin expected utility criterion …
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equilibrium. -- Analogy expectations ; bounded rationality ; curse ; learning …
Persistent link: https://www.econbiz.de/10003803107
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
cues. These results cannot be explained by existing refinement theories, while a bounded rationality model explains them …
Persistent link: https://www.econbiz.de/10014066107