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A framework for robustness to ambiguity of higher-order beliefs

Stauber, Ronald

Description

Standard type spaces induce belief structures defined by precise beliefs. This paper proposes and analyzes simple procedures for constructing perturbations of such belief structures in which beliefs have a degree of ambiguity. Specifically, we construct ambiguous type spaces whose induced (ambiguous) belief hierarchies approximate the standard, precise, belief hierarchies corresponding to the initial type space. Based on a metric that captures the resulting approximation, two alternative...[Show more]

CollectionsANU Research Publications
Date published: 2014
Type: Journal article
URI: http://hdl.handle.net/1885/38798
Source: International Journal of Game Theory
DOI: 10.1007/s00182-013-0394-6

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