Common Belief Foundations of Global Games

Stephen Morris, Hyun Song Shin and Muhamet Yildiz (myildiz@mit.edu)

Working Papers from Princeton University, Department of Economics, Econometric Research Program.

Abstract: We study coordination games under general type spaces. We characterize rationalizable actions in terms of the properties of the belief hierarchies and show that there is a unique rationalizable action played whenever there is approximate common certainty of rank beliefs, defined as the probability the players assign to their payoff parameters being higher than their opponents'. We argue that this is the driving force behind selection results for the specific type spaces in the global games literature.

JEL-codes: C70 D83 (search for similar items in EconPapers)
Date: 2015-11
New Economics Papers: this item is included in nep-gth, nep-hpe and nep-mic
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Citations: View citations in EconPapers (3)

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Related works:
Journal Article: Common belief foundations of global games (2016)
Working Paper: Common Belief Foundations of Global Games (2007)
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