Theoretical Economics, Volume 2, Number 1 (March 2007)

Theoretical Economics 2 (2007), 15–40

Interim correlated rationalizability

Eddie Dekel, Drew Fudenberg, Stephen Morris


This paper proposes the solution concept of interim correlated rationalizability, and shows that all types that have the same hierarchies of beliefs have the same set of interim-correlated-rationalizable outcomes. This solution concept characterizes common certainty of rationality in the universal type space.

Keywords: Rationalizability, incomplete information, common certainty, common knowledge, universal type space

JEL classification: C70, C72

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