On the relationship between robustness to incomplete information and noise-independent selection in global games

B-Tier
Journal: Journal of Mathematical Economics
Year: 2011
Volume: 47
Issue: 6
Pages: 683-688

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This note demonstrates that a symmetric 3×3 supermodular game may fail to have any equilibrium robust to incomplete information. Since the global game solution in symmetric 3×3 supermodular games is known to be independent of the noise structure, this result implies that a noise-independent selection in global games may not be a robust equilibrium. Our proof reveals that the assumption in global games that the noise errors are independent of the state imposes a non-trivial restriction on incomplete information perturbations.

Technical Details

RePEc Handle
repec:eee:mateco:v:47:y:2011:i:6:p:683-688
Journal Field
Theory
Author Count
2
Added to Database
2026-01-26