The epistemic spirit of divinity

A-Tier
Journal: Journal of Economic Theory
Year: 2024
Volume: 222
Issue: C

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

We study strategic reasoning in a signaling game where players initially have common belief in an outcome distribution and in the event that the sender's beliefs are independent of her type. We characterize the behavioral implications of these epistemic hypotheses by means of a rationalizability procedure with belief restrictions. Our solution concept is related to, but weaker than Divine Equilibrium (Banks and Sobel, 1987). First, we do not obtain a sequential equilibrium, but just a perfect Bayesian equilibrium with heterogeneous off-path beliefs (Fudenberg and He, 2018). Second, when we model how the receiver may rationalize a particular deviation, we take into account that some types could have preferred a different deviation, and we show this is natural and relevant via an economic example.

Technical Details

RePEc Handle
repec:eee:jetheo:v:222:y:2024:i:c:s0022053124001091
Journal Field
Theory
Author Count
2
Added to Database
2026-01-24