Abstract
In this paper we remove the assumption of common knowledge of prior beliefs in games with incomplete information. Our proposal is to introduce the notion of semi-game and treat beliefs as control variables, subject to credibility constraints. We are able to define our equilibrium concept of sequential equilibrium in beliefs. We can provide a general existence theorem for signaling semi-games. We are able to prove that the equilibrium is generally not unique. The relationship between our equilibrium concept and those presented in recent literature is analyzed.
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References
Brusco, S. and Tedeschi, P. (1988): “Sequential Equilibria in Semi-Games”, Quaderni di Ricerca, Istituto di Economia Politica, Università Bocconi n. 88–94.
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© 1991 Springer Science+Business Media Dordrecht
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Brusco, S., Tedeschi, P. (1991). Sequential Equilibria in Beliefs In Semi-Games. In: Chikán, A. (eds) Progress in Decision, Utility and Risk Theory. Theory and Decision Library, vol 13. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-3146-9_17
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DOI: https://doi.org/10.1007/978-94-011-3146-9_17
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-5387-7
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