GAMES OF INCOMPLETE INFORMATION WITHOUT COMMON KNOWLEDGE PRIORS

摘要

We relax the assumption that priors are common knowledge, in the standard model of games of incomplete information. We make the realistic assumption that the players are boundedly rational: they base their actions on finite-order belief hierarchies. When the different layers of beliefs are independent of each other, we can retain Harsanyi's type-space, and we can define straightfor- ward generalizations of Bayesian Nash Equilibrium (BNE) and Rationalizability in our context.