Heifetz, Aviad; Kets, Willemien - In: Theoretical economics : TE ; an open access journal in … 13 (2018) 1, pp. 415-465
commonly use refinements to obtain sharp predictions. In an important paper, Weinstein and Yildiz (2007) show that no … refinement is robust to perturbations of high-order beliefs. We show that robust refinements do exist if we relax the assumption …–Nash equilibrium is robust. In these environments, a researcher interested in making sharp predictions can use refinements to select …