Working Papers, University of California, Department of Economics 11,1
In a companion paper we introduced a general notion of perfect Bayesian equilibrium which can be applied to arbitrary extensive-form games. The essential ingredient of the proposed definition is the qualitative notion of AGM-consistency. In this paper we provide an epistemic foundation for AGM-consistency based on the AGM theory of belief revision.
belief revision common prior plausibility order perfect Bayesian equilibrium consistency sequential equilibrium