11 papers
When Truth Does Not Take on Its Shoes: How Misinformation Spreads in Chatrooms
Shuige Liu
We examine how misinformation spreads in social networks composed of individuals with long-term offline relationships. Especially, we focus on why misinformation persists and diffu…
Reasoning about Bounded Reasoning
Shuige Liu, Gabriel Ziegler
In experimental applications of bounded-reasoning models, behavior is often summarized by distributions of "levels". We argue that such summaries conflate two conceptually distinct…
Level- Reasoning, Cognitive Hierarchy, and Rationalizability
Shuige Liu
We employ a unified framework to provide an epistemic-theoretical foundation for Camerer, Ho, and Chong's (2003) cognitive hierarchy (CH) solution and its dynamic extension, using…
Pecuniary Externality, Ideology and Sphere of Influence
Tomoo Kikuchi, Shuige Liu, Lien Pham
We build a game-theoretic model to formalize Kindleberger's (1996) idea of the public good of leadership. Two superpowers use ideology to compete for influence by forming clubs who…
Quantal Response Equilibrium and Rationalizability: Inside the Black Box
Shuige Liu, Fabio Maccheroni
This paper aims to connect epistemic and behavioral game theory by examining the epistemic foundations of quantal response equilibrium (QRE) in static games. We focus on how much i…
Compactification of Extensive Game Structures and Backward Dominance Procedure
Shuige Liu
We study the relationship between invariant transformations on extensive game structures and backward dominance procedure (BD), a generalization of the classical backward induction…
Characterizing Permissibility, Proper Rationalizability, and Iterated Admissibility by Incomplete Information
Shuige Liu
We characterize three interrelated concepts in epistemic game theory: permissibility, proper rationalizability, and iterated admissibility. We define the lexicographic epistemic mo…
Measuring Information Burden: From Coalition-Based Reasoning to the Price System
Shuige Liu
The price system is often said to economize on information. This paper asks how much information it saves. I develop a formal framework for measuring the informational burden that…
Ordered Kripke Model, Permissibility, and Convergence of Probabilistic Kripke Model
Shuige Liu
We define a modification of the standard Kripke model, called the ordered Kripke model, by introducing a linear order on the set of accessible states of each state. We first show t…
Characterizing Assumption of Rationality by Incomplete Information
Shuige Liu
We characterize common assumption of rationality of 2-person games within an incomplete information framework. We use the lexicographic model with incomplete information and show t…
A Note on Gale, Kuhn, and Tucker's Reductions of Zero-Sum Games
Shuige Liu
Gale, Kuhn and Tucker (1950) introduced two ways to reduce a zero-sum game by packaging some strategies with respect to a probability distribution on them. In terms of value, they…