Abstract
We formalize a solution concept called interim partially correlated rationalizability (IPCR), which was implicitly discussed in both Ely and Peski (2006) and Dekel et al. (2007). IPCR allows for interim correlations, i.e., correlations that depend on opponents' types but not on the state of nature. As a direct extension of Ely and Peski's main result, we show that hierarchies of beliefs over conditional beliefs are necessary and sufficient for the identification of IPCR. We use new proof techniques that better illustrate the connection between higher order beliefs and interim rationalizability.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
