Elias Tsakas

Department of Economics
Maastricht University

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Universally rational belief hierarchies
International Game Theory Review 16 (2014), 1440003.

In a recent paper, Tsakas (2012) introduced the notion of rational beliefs. These are Borel probability measures that assign a rational probability to every Borel event. Then, he constructed the corresponding Harsanyi type space model that represents the rational belief hierarchies. As he showed, there are rational types that are associated with a non-rational probability measure over the product of the underlying space of uncertainty and the opponent's types. In this paper, we define the universally rational belief hierarchies, as those that do not exhibit this property. Then, we characterize them in terms of a natural restriction imposed directly on the belief hierarchies.