Germano, FabrizioWeinstein, JonathanZuazo-Garin, PeioUniversitat Pompeu Fabra. Departament d'Economia i Empresa2018-02-142018-02-142016-12-16http://hdl.handle.net/10230/27992Predictions under common knowledge of payoffs may differ from those under arbitrarily, but finitely, many orders of mutual knowledge; Rubinstein's (1989) Email game is a seminal example. Weinstein and Yildiz (2007) showed that the discontinuity in the example generalizes: for all types with multiple rationalizable (ICR) actions, there exist similar types with unique rationalizable action. This paper studies how a wide class of departures from common belief in rationality impact Weinstein and Yildiz's discontinuity. We weaken ICR to ICR-x, where x is a sequence whose n-th term is the probability players attach to (n - 1)th-order belief in rationality. We find that Weinstein and Yildiz's discontinuity holds when higher-order belief in rationality remains above some threshold (constant x), but fails when higher-order belief in rationality eventually becomes low enough (x converging to 0).application/pdfengL'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative CommonsUncertain rationality, depth of reasoning and robustness in games with incomplete information<resourceType xmlns="http://datacite.org/schema/kernel-3" resourceTypeGeneral="Other">info:eu-repo/semantics/workingPaper</resourceType><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">robustness</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">rationalizability</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">bounded rationality</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">incomplete information</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">belief hierarchies</subject><subject xmlns="http://datacite.org/schema/kernel-3" subjectScheme="keyword">Microeconomics</subject><rights xmlns="http://datacite.org/schema/kernel-3">info:eu-repo/semantics/openAccess</rights>