 Robust equilibria under non-common priorsDaisuke Oyama and Olivier Tercieux Post-Print from HAL Abstract: This paper considers the robustness of equilibria to a small amount of incomplete information, where players are allowed to have heterogeneous priors. An equilibrium of a complete information game is robust to incomplete information under non-common priors if for every incomplete information game where each player's prior assigns high probability on the event that the players know at arbitrarily high order that the payoffs are given by the complete information game, there exists a Bayesian Nash equilibrium that generates behavior close to the equilibrium in consideration. It is shown that for generic games, an equilibrium is robust under non-common priors if and only if it is the unique rationalizable action profile. Set-valued concepts are also introduced, and for generic games, a smallest robust set is shown to exist and coincide with the set of a posteriori equilibria. Keywords: Robustness; Common prior assumption; Higher order belief; Incomplete information (search for similar items in EconPapers) Published in Journal of Economic Theory, 2010, 145 (2), pp.752-784. ⟨10.1016/j.jet.2009.10.009⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00754466 DOI: 10.1016/j.jet.2009.10.009 Access Statistics for this paper More papers in Post-Print from HAL |
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