Article ID Journal Published Year Pages File Type
5071916 Games and Economic Behavior 2014 12 Pages PDF
Abstract
We introduce a framework for modeling pairwise interactive beliefs and provide an epistemic foundation for Nash equilibrium in terms of pairwise epistemic conditions locally imposed on only some pairs of players. Our main result considerably weakens not only the standard sufficient conditions by Aumann and Brandenburger (1995), but also the subsequent generalization by Barelli (2009). Surprisingly, our conditions do not require nor imply mutual belief in rationality.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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