Interdependent Preferences and Strategic Distinguishability

Dirk Bergemann, Stephen Morris and Satoru Takahashi

No 1772RR, Cowles Foundation Discussion Papers from Cowles Foundation for Research in Economics, Yale University

Abstract: We identify a universal type space of possible interdependent (expected utility) preferences of a group of agents satisfying two criteria. First, a type consists of a "detail free" description, in a natural language, of the agents' interdependent preferences. Second, distinct types in the universal type space must be "strategically distinguishable" in the sense that there must exist a mechanism where those types are guaranteed to behave differently in equilibrium. Our results generalize and unify results of Abreu and Matsushima (1992b) (who characterized strategic distinguishability on fixed finite type spaces) and Dekel, Fudenberg, and Morris (2006), (2007) (who characterized strategic distinguishability on type spaces without preference uncertainty and thus without interdependent preferences).

Keywords: Interdependent preferences; Higher-order preference hierarchy; Universal type space; Strategic distinguishability (search for similar items in EconPapers)
JEL-codes: C79 D82 D83 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2010-09, Revised 2014-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Journal Article: Interdependent preferences and strategic distinguishability (2017)
Working Paper: Interdependent Preferences and Strategic Distinguishability (2016)
Working Paper: Interdependent Preferences and Strategic Distinguishability (2011)
Working Paper: Interdependent Preferences and Strategic Distinguishability (2011)
Working Paper: Interdependent Preferences and Strategic Distinguishability (2011)
Working Paper: Interdependent Preferences and Strategic Distinguishability (2010)
Working Paper: Interdependent Preferences and Strategic Distinguishability (2010)
Working Paper: Interdependent Preferences and Strategic Distinguishability (2010)
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