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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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    References listed on IDEAS

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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.

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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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