Topologies on Types Connections.pdfVIP

Topologies on Types: Connections Yi-Chun Cheny Siyang Xiongz May 28, 2008 Abstract For di§erent purposes, economists may use di§erent topologies on types. We char- acterize the relationship among these various topologies. First, we show that for any general types, convergence in the uniform-weak topology implies convergence in both the strategic topology and the uniform strategic topology. Second, we explicitly con- struct a type which is not the limit of any Önite types under the uniform strategic topology, showing that the uniform strategic topology is strictly Öner than the strategic topology. With these results, we can linearly rank various topologies on the universal type space, which gives a clear picture of the relationship between the implication of types for beliefs and their implication for behaviors. Keywords: the universal type space, the strategic topology; the uniform strategic topology; the uniform-weak topology; interim correlated rationalizable actions JEL ClassiÖcation: C70 We are grateful to Eddie Dekel for his invaluable support, guidance, and detailed comments. We also thank Je§ Ely for helpful discussions and Aaron Sojourner for useful comments. All remaining errors are our own. yDepartment of Economics, Northwestern University, 2001 Sheridan Road, Evanston, IL 60208, yichunchen2010@u.northwestern.edu zDepartment of Economics, Northwestern University, 2001 Sheridan Road, Evanston, IL 60208, xiong@u.northwestern.edu 1 1 Introduction If two agents have similar beliefs on some payo§-relevant uncertainty, d