Weakly-Bayesian and Consistent Assessments

Abstract:     
A weakly-Bayesian assessment is computed applying Bayes rule at positive probability information sets. We characterize the set of extensive-forms for which the sets of weakly-Bayesian and consistent assessments coincide. In doing so we disentangle the different restrictions imposed by consistency across information sets. We apply this knowledge to strengthen weakly-Bayesian assessments and to derive conditions for equivalence with consistency that can be useful in economic applications.

Number of Pages in PDF File: 34

Keywords: Weakly-Bayesian assessments, Consistent assessments, Sequential equilibrium, Extensive-forms

JEL Classification: C62, C72, D80

working papers series