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Strict Robustness to Incomplete Information

by Stephen Morris, Daisuke Oyama, Satoru Takahashi ยท 2023

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ISBN:  Unavailable

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Page count: 22

We study a strict version of the notion of equilibrium robustness by Kajii and Morris (1997) that allows for a larger class of incomplete information perturbations of a given complete information game, where with high probability, players believe that their payoffs are close to (but may be different from) those of the complete information game. We show that a strict monotone potential maximizer of a complete information game is strictly robust if either the game or the associated strict monotone potential is supermodular, and that the converse also holds in all binary-action supermodular games.