Informational Robustness of Common Belief in Rationality

TL;DR

This paper investigates how common belief in rationality remains valid across various information structures in incomplete-information games, emphasizing both global and localized informational robustness.

Contribution

It introduces a framework for analyzing the informational robustness of common belief in rationality, extending to localized scenarios.

Findings

Predictions hold across all information structures under certain conditions.

Global and localized informational robustness are characterized.

Framework for analyzing robustness in incomplete-information games.

Abstract

In this note, I explore the implications of informational robustness under the assumption of common belief in rationality. That is, predictions for incomplete-information games which are valid across all possible information structures. First, I address this question from a global perspective and then generalize the analysis to allow for localized informational robustness.