Beliefs in Network Games (Revised version of CentER DP 2007-46)

W. Kets

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Networks can have an important effect on economic outcomes. Given the complexity of many of these networks, agents will generally not know their structure. We study the sensitivity of game-theoretic predictions to the specification of players’ (common) prior on the network in a setting where players play a fixed game with their neighbors and only have local information on the network structure. We show that two priors are close in a strategic sense if and only if (i) the priors assign similar probabilities to all events that involve a player and his neighbors, and (ii) with high probability, a player believes, given his type, that his neighbors’ conditional beliefs are close under the two priors, and that his neighbors believe, given their type, that. . . the conditional beliefs of their neighbors are close, for any number of iterations.
Original languageEnglish
Place of PublicationTilburg
Number of pages48
Publication statusPublished - 2008

Publication series

NameCentER Discussion Paper


  • Network games
  • incomplete information
  • higher order beliefs
  • continuity
  • random networks
  • population uncertainty


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