Penta, Antonio - In: Theoretical economics : TE ; an open access journal in … 8 (2013) 2, pp. 405-430
Weinstein and Yildiz (Econometrica, 2007) have shown that only very weak predictions are robust to mispecifications of higher order beliefs. Whenever a type has multiple rationalizable actions, any of these actions is uniquely rationalizable for some arbitrarily close type. Hence, refinements of...