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Dynamic Consistency in Incomplete Information Games with Multiple Priors

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  • Pahlke, Marieke

    (Center for Mathematical Economics, Bielefeld University)

Abstract

This paper generalizes the concept of Sequential Equilibrium to allow for ambiguous incomplete information about types or states. We characterize conditions that ensure existence of Sequential Equilibria under ambiguous incomplete information. Under these conditions players form subjective prior belief sets that satisfy a rectangularity condition which leads to dynamically consistent behavior. Furthermore, we give an example which shows that ambiguity can introduce new Sequential Equilibria.

Suggested Citation

  • Pahlke, Marieke, 2018. "Dynamic Consistency in Incomplete Information Games with Multiple Priors," Center for Mathematical Economics Working Papers 599, Center for Mathematical Economics, Bielefeld University.
  • Handle: RePEc:bie:wpaper:599
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    File URL: https://pub.uni-bielefeld.de/download/2930492/2930576
    File Function: First Version, 2018
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    References listed on IDEAS

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    13. Ellis, Andrew, 2018. "On dynamic consistency in ambiguous games," Games and Economic Behavior, Elsevier, vol. 111(C), pages 241-249.
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    Cited by:

    1. Pahlke, Marieke, 2019. "A Note on Dynamic Consistency in Ambiguous Persuasion," Center for Mathematical Economics Working Papers 611, Center for Mathematical Economics, Bielefeld University.

    More about this item

    Keywords

    sequential equilibrium; ambiguity; dynamic consistency; multiple priors; imprecise information;

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