Brandenburger and Keisler (2006) demonstrated that universal type spaces generate self-referential paradoxes when agents can reason about all possible belief hierarchies including their own.

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Belief hierarchies(describing the structure of nested beliefs being restricted): Layered levels of thinking about beliefs: what I believe, what I believe you believe, what I believe you believe I believe, and so on.
Brandenburger and Keisler(the researchers who made the discovery being discussed): Two mathematicians and economists who studied how people reason about what others are thinking; they're known for discovering logical problems that come up when we try to think about all possible thoughts and beliefs.
Self-referential paradoxes(Being compared to the Sorites paradox in the statement): Logical puzzles where a statement refers to itself in a way that creates a contradiction, like 'this sentence is false.'
Universal type spaces(the technical structure that creates the paradox): A mathematical framework that tries to represent every possible way a person could think, believe, or have preferences—basically a complete map of all possible beliefs someone could have.

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