econ.THDate pending

Strategic Type Spaces

Authors: Olivier Gossner, Rafael Veiel

Organizations: CNRS–École Polytechnique and London School of Economics · University of Texas at Austin

Abstract

We provide a strategic foundation for information: in any given game with incomplete information we define strategic quotients as information representations that are sufficient for players to compute best-responses to other players. We prove 1/ existence and essential uniqueness of a minimal strategic quotient called the Strategic Type Space (STS) in which a type is given by an interim correlated rationalizability hierarchy and represents a set of beliefs over other players' types and nature that rationalize this hierarchy and 2/ that the minimal STS has a recursive structure that is captured by a finite automaton.

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