Uniform Topologies on Types
We study the robustness of interim correlated rationalizability to perturbations of higher-order beliefs. We introduce a new metric topology on the universal type space, called uniform weak topology, under which two types are close if they have similar first-order beliefs, attach similar probabilities to other players having similar first-order beliefs, and so on, where the degree of similarity is uniform over the levels of the belief hierarchy. This topology generalizes the now classic notion of proximity to common knowledge based on common p-beliefs (Monderer and Samet (1989)). We show that convergence in the uniform weak topology implies convergence in the uniform strategic topology (Dekel, Fudenberg, and Morris (2006)). Moreover, when the limit is a finite type, uniform-weak convergence is also a necessary condition for convergence in the strategic topology. Finally, we show that the set of finite types is nowhere dense under the uniform strategic topology. Thus, our results shed light on the connection between similarity of beliefs and similarity of behaviors in games.
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References listed on IDEAS
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- Jeffrey C. Ely & Marcin Pęski, 2011.
Review of Economic Studies,
Oxford University Press, vol. 78(3), pages 907-937.
- Morris, Stephen & Dekel, Eddie & Fudenberg, Drew, 2007.
"Interim Correlated Rationalizability,"
3196333, Harvard University Department of Economics.
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World Scientific Book Chapters,
in: The Language of Game Theory Putting Epistemics into the Mathematics of Games, chapter 2, pages 31-41
World Scientific Publishing Co. Pte. Ltd..
- Eddie Dekel & Drew Fudenberg & Stephen Morris, 2005.
"Topologies on Types,"
Harvard Institute of Economic Research Working Papers
2093, Harvard - Institute of Economic Research.
- Eddie Dekel & Drew Fudenberg, 2006. "Topologies on Type," Discussion Papers 1417, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Dekel, Eddie & Fudenberg, Drew & Morris, Stephen, 2006. "Topologies on Types," Scholarly Articles 3160489, Harvard University Department of Economics.
- Eddie Dekel & Drew Fudenberg & Stephen Morris, 2005. "Topologies on Types," Levine's Bibliography 784828000000000061, UCLA Department of Economics.
- Jonathan Weinstein & Muhamet Yildiz, 2007. "A Structure Theorem for Rationalizability with Application to Robust Predictions of Refinements," Econometrica, Econometric Society, vol. 75(2), pages 365-400, 03.
- Atsushi Kajii & Stephen Morris, 1997.
"Payoff Continuity in Incomplete Information Games,"
1193R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Executive Board, 2008. ""Topologies on types": Correction," Theoretical Economics, Econometric Society, vol. 3(2), June.
- Atsushi Kajii & Stephen Morris, 1997. "Refinements and Social Order Beliefs: A Unified Survey," Discussion Papers 1197, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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