We propose two characteristics of players' beliefs and study their role in shaping the set of rationalizable strategy profiles in games with incomplete information. The first characteristic, type-sensitivity, is related to how informative a player thinks his type is. The second characteristic,...

Sentiments are characteristics of players' beliefs. I propose two notions of sentiments, confidence and optimism, and I study their role in shaping the set of rationalizable strategy profiles in (incomplete information) games with complementarities. Confidence is related to a player's perceived...

We study the design of mechanisms that implement Lindahl or Walrasian allocations and whose Nash equilibria are dynamically stable for a wide class of adaptive dynamics. We argue that supermodularity is not a desirable stability criterion in this mechanism design context, focusing instead on...