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This paper shows that the opportunity costs resulting from economic interdependence decrease the equilibrium probability of war in an incomplete information game. This result is strongly consistent with existing empirical analyses of the inverse trade-conflict relationship, but is the opposite...
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We consider an example of a Markov game with lack of information on one side, that was first introduced by Renault (2002). We compute both the value and optimal strategies for a range of parameter values.
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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...
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For different purposes, economists may use different topologies on types. We characterize the relationship among these various topologies. First, we show that for any general types, convergence in the uniform-weak topology implies convergence in both the strategic topology and the uniform...
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