In this paper, we provide an epistemic characterization of iterated admissibility (IA), i.e., iterated elimination of weakly dominated strategies. We show that rationality and common assumption of rationality (RCAR) in complete lexicographic type structures implies IA, and that there exist such...

We prove that a universal preference type space exists under more general conditions than those postulated by Epstein and Wang (1996) . To wit, it suffices that preferences can be encoded monotonically in rich enough ways by collections of continuous, monotone real-valued functionals over acts,...

We build on the work of Brandenburger, Friedenberg, and Keisler (2008, BFK) by showing that rationality and common assumption of rationality (RCAR) is possible in complete lexicographic type structures and characterizes iterated admissibility---i.e., iterated elimination of weakly dominated...

Several recent papers argue that contracts provide reference points that affect ex post behavior. We test this hypothesis in a canonical buyer-seller relationship with renegotiation. Our paper provides causal experimental evidence that an initial contract has a highly significant and...