Project Grant 2215475

The National Science Foundation awarded a $294,401 Project Grant to the University of Chicago under the Social, Behavioral, and Economic Sciences program (CFDA 47.075). The grant supports research developing new tools for robust predictions in strategic games with incomplete information. Specifically, the researchers will generalize the solution concept of Bayesian correlated equilibrium to characterize rationalizable behavior under common prior beliefs about unobserved payoff-relevant states. They will also study an upper bound on players' information to complement existing formulations, allowing more realistic predictions when agents lack full information. Further, the researchers will extend and apply theories of informationally-robust optimal mechanisms to design efficient trading platforms guaranteed to produce gains from trade even with interdependent values and correlated information. Insights on robust trading could improve market efficiency in securities, health insurance, and other domains with informational frictions. The grant period runs from July 2022 through June 2025.