Topology-Free Type Structures with Conditioning Events

Abstract: We establish the existence of the universal type structure in presence of conditioning events without any topological assumption, namely, a type structure that is terminal, belief-complete, and non-redundant, by performing a construction `a la Heifetz & Samet (1998). In doing so, we answer affirmatively to a longstanding conjecture made by Battigalli & Siniscalchi (1999) concerning the possibility of performing such a construction with conditioning events. In particular, we obtain the result by exploiting arguments from category theory and the theory of coalgebras, thus, making explicit the mathematical structure underlining all the constructions of large interactive structures and obtaining the belief-completeness of the structure as an immediate corollary of known results from these fields.