I investigate the decision problem of a player in a game of incomplete information who faces uncertainty about the … rationality and eliminate all strategies which are not rationalizable. Second, I apply the maximin expected utility criterion … uncertainty. A bidder following this decision criterion in a first-price auction expects all other bidders to bid their highest …

strategic uncertainty. In this paper I show that for a large class of games there are no epistemic models that satisfy …

unique rationalizable action. This paper studies how a wide class of departures from common belief in rationality impact … attach to (n- 1)th-order belief in rationality. We find that Weinstein and Yildiz's discontinuity remains when λn is above an … appropriate threshold for all n, but fails when λn converges to 0. That is, if players' confidence in mutual rationality persists …

I investigate the decision problem of a player in a game of incomplete information who faces uncertainty about the … rationality and eliminate all strategies which are not rationalizable. Second, I apply the maximin expected utility criterion … uncertainty. A bidder following this decision criterion in a first-price auction expects all other bidders to bid their highest …

' delegation decision as a trade-off between asset return uncertainty and delegation uncertainty. Our theory explains several …Delegation bears an intrinsic form of uncertainty. Investors hire managers for their superior models of asset markets … investors partially delegate and hedge against delegation uncertainty, CAPM alpha arises; (2) the cross-section dispersion of …

In this paper, I test the predictions of rational inattention theory using a laboratory experiment where one role in a …