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Interim partially correlated rationalizability

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  • Tang, Qianfeng

Abstract

We formalize a solution concept called interim partially correlated rationalizability (IPCR), which was implicitly discussed in both Ely and Peski (2006) and Dekel et al. (2007). IPCR allows for interim correlations, i.e., correlations that depend on opponents' types but not on the state of nature. As a direct extension of Ely and Peski's main result, we show that hierarchies of beliefs over conditional beliefs are necessary and sufficient for the identification of IPCR. We use new proof techniques that better illustrate the connection between higher order beliefs and interim rationalizability.

Suggested Citation

  • Tang, Qianfeng, 2015. "Interim partially correlated rationalizability," Games and Economic Behavior, Elsevier, vol. 91(C), pages 36-44.
    • Handle: RePEc:eee:gamebe:v:91:y:2015:i:c:p:36-44
    DOI: 10.1016/j.geb.2015.03.012
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    1. Françoise Forges, 2006. "Correlated Equilibrium in Games with Incomplete Information Revisited," Theory and Decision, Springer, vol. 61(4), pages 329-344, December.
    2. Liu, Qingmin, 2009. "On redundant types and Bayesian formulation of incomplete information," Journal of Economic Theory, Elsevier, vol. 144(5), pages 2115-2145, September.
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    1. Tang, Qianfeng, 2015. "Hierarchies of beliefs and the belief-invariant Bayesian solution," Journal of Mathematical Economics, Elsevier, vol. 59(C), pages 111-116.
    2. Tang, Qianfeng, 2010. "The Bayesian Solution and Hierarchies of Beliefs," MPRA Paper 26811, University Library of Munich, Germany.

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    More about this item

    Keywords

    Games with incomplete information; Rationalizability; Hierarchies of beliefs;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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