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We develop an approach to providing epistemic conditions for admissible behavior in games. Instead of using lexicographic beliefs to capture infinitely less likely conjectures, we postulate that players use tie-breaking sets to help decide among strategies that are outcome-equivalent given their...
Persistent link: https://www.econbiz.de/10011049856
A consistency condition (action-consistency) on the interim beliefs of players in a game is introduced. Action-consistency is weaker than common priors and, unlike common priors, is characterized by a "no-bets" condition on verifiable events. Using action-consistency, we provide epistemic...
Persistent link: https://www.econbiz.de/10008483502