We provide a framework to study dynamic optimization problems where the agent is uncertain about her environment but has (possibly) an incorrectly specified model, in the sense that the support of her prior does not include the true model. The agent's actions affect both her payoff and also what...

We introduce an equilibrium framework that relaxes the standard assumption that people have a correctly-specified view of their environment. Players repeatedly play a simultaneous-move game where they potentially face both strategic and payoff uncertainty. Each player has a potentially...