Epistemic conditions for agreement and stochastic independence of epsilon-contaminated beliefs

This paper studies strategic games in which the beliefs of each player are represented by a set of probability measures satisfying a parametric specia lization that is called epsilon-contamination. That is, beliefs an represen ted by a set of probability measures, where every measure in the set has th e form (1 - epsilon)p* + epsilon p, p* being the benchmark probability meas ure, p being a contamination, and epsilon reflecting the amount of error in p* that is deemed possible. Under a suitably modified common Frier assumpt ion, if beliefs about opponents' action choices are common knowledge, then beliefs satisfy some properties that can be interpreted as agreement and st ochastic independence. (C) 2000 Elsevier Science B.V. All rights reserved.