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Research Highlights

Weak Assumption and Iterative Admissibility (published in JOURNAL OF ECONOMIC THEORY)

  • Author Chih-Chun Yang
  • Abstract Brandenburger, Friedenberg, and Keisler [Econometrica 76 (2008), 307-352] show that rationality and common assumption of rationality (RCAR) is impossible in a complete and continuous type structure. We show, by introducing an alternative notion of “weak assumption”, that rationality and common weak assumption of rationality (RCWAR) is possible in a complete and continuous type structure. This possibility result provides an epistemic characterization for iterative admissibility.
  • Link http://www.sciencedirect.com/science/article/pii/S0022053115000526(Open New Window)