Cognitive hierarchy theory, a collection of structural models of non-equilibrium thinking, in which players' best responses rely on heterogeneous beliefs on others' strategies including naive behavior, proved powerful in explaining observations from a wide range of games. We propose an inclusive...

We prove that any normal-form game that is dominance solvable by weak dominance and that satisfies the transference of decision-maker indifference condition (TDI* of Marx and Swinkels [1997]) has a finite number of equilibrium outcomes. This implies that the unique outcome of dominance...

This paper analyzes the optimal size of a deliberating committee where (i) there is no conflict of interest among individuals and (ii) information acquisition is costly. The committee members simultaneously decide whether to acquire information, and then make the ex-post efficient decision. The...