Finite-Order Implications of any Equilibrium
نویسندگان
چکیده
منابع مشابه
Finite-order Implications of Any Equilibrium
Present economic theories make a common-knowledge assumption that implies that the first or the second-order beliefs determine all higherorder beliefs. We analyze the role of such closing assumptions at finite orders by instead allowing higher orders to vary arbitrarily. Assuming that the space of underlying uncertainty is sufficiently rich, we show that the resulting set of possible outcomes, ...
متن کاملRationalizability and Finite-order Implications of Equilibrium
Present economic theories assume common knowledge of the type structure after specifying the first or the second orders of beliefs. We analyze the set of equilibrium predictions that can be deduced from the knowledge of equilibrium and players’ beliefs at finite orders. For generic finite-action games and the games with unidimensional action spaces and single-peaked preferences, we show that, i...
متن کاملFinite Order Implications of Common Priors1
I characterize the implications of the common prior assumption for finite orders of beliefs about beliefs at a state and show that in finite models, the only such implications are those stemming from the weaker assumption of a common support. More precisely, given any finite N and any finite partitions model where priors have the same support, there is another finite partitions model with commo...
متن کاملFinite Order Implications of Common Priors
I characterize the implications of the common prior assumption for finite orders of beliefs about beliefs at a state and show that in finite models, the only such implications are those stemming from the weaker assumption of a common support. More precisely, given any finite N and any finite partitions model where priors have the same support, there is another finite partitions model with commo...
متن کاملSupplemental Notes for “Finite Order Implications of Common Priors”
Mertens–Zamir demonstrate the existence of a subspace of X, denoted Ω, satisfying the following properties. First, there is a set of types, T , such that Ω is homeomorphic to Θ×T I . Second, T is homeomorphic to ∆(Θ×T I−1). Finally, Ω is the largest space with this property. I refer to a point in Ω as a world. Intuitively, we can think of a world as a specification of the true value of the unkn...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2004
ISSN: 1556-5068
DOI: 10.2139/ssrn.500202