Knowledge and Equilibrium in Games
AbstractThis paper describes an approach to noncooperative game theory that aims to capture considerations that exercise the minds of real-world strategists. The most commonly used tool of noncooperative game theory is the Nash equilibrium. This raises the question: Are there assumptions on what the players in a game think—including what they think other players think, and so on—that lead to consideration of Nash equilibrium? The paper provides answers to this, and related, questions. The approach of this paper involves analyzing the decision problem facing each player in a strategic ("interactive") situation. In addition to grounding game theory in considerations that are of the essence in actual strategic situations, the approach has a number of other objectives: 1) to make game theory more immediately accessible to people who are trained in decision theory but who are not "game theorists" and 2) to make game theory easier to teach to students. Finally, the approach suggests new directions for research into the nature of strategic situations.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by American Economic Association in its journal Journal of Economic Perspectives.
Volume (Year): 6 (1992)
Issue (Month): 4 (Fall)
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Arnab Bhattacharjee & Sean Holly, 2005.
"Inflation Targeting, Committee Decision Making and Uncertainty: The Case of the Bank of England’s MPC,"
CDMA Working Paper Series
200503, Centre for Dynamic Macroeconomic Analysis.
- Bhattacharjee, A. & Holly, S., 2005. "Inflation Targeting, Committee Decision Making and Uncertainty: The case of the Bank of England’s MPC," Cambridge Working Papers in Economics 0530, Faculty of Economics, University of Cambridge.
- Sean Holly & Arnab Bhattacharjee, 2005. "Inflation Targeting, Committee Decision Making and Uncertainty: The case of the Bank of England's MPC," Computing in Economics and Finance 2005 119, Society for Computational Economics.
- Arnab Bhattacharjee & Sean Holly, 2004. "Inflation Targeting, committee Decision Making and Uncertainty: The case of the Bank of England's MPC," Money Macro and Finance (MMF) Research Group Conference 2004 63, Money Macro and Finance Research Group.
- Rapoport, Amnon & Amaldoss, Wilfred, 2000. "Mixed strategies and iterative elimination of strongly dominated strategies: an experimental investigation of states of knowledge," Journal of Economic Behavior & Organization, Elsevier, vol. 42(4), pages 483-521, August.
- John Hillas & Elon Kohlberg, 1996. "Foundations of Strategic Equilibrium," Game Theory and Information 9606002, EconWPA, revised 18 Sep 1996.
- Emiliano Lorini & François Schwarzentruber, 2010. "A Modal Logic of Epistemic Games," Games, MDPI, Open Access Journal, vol. 1(4), pages 478-526, November.
- Miguel Costa-Gomes & Vincent P. Crawford & Bruno Broseta, .
"Cognition and Behavior in Normal-Form Games:An Experimental Study,"
00/45, Department of Economics, University of York.
- Costa-Gomes, Miguel & Crawford, Vincent P & Broseta, Bruno, 2001. "Cognition and Behavior in Normal-Form Games: An Experimental Study," Econometrica, Econometric Society, vol. 69(5), pages 1193-1235, September.
- Broseta, Bruno & Costa-Gomes, Miguel & Crawford, Vincent P., 2000. "Cognition and Behavior in Normal-Form Games: An Experimental Study," University of California at San Diego, Economics Working Paper Series qt0fp8278k, Department of Economics, UC San Diego.
- Costa-Gomes, Miguel & Crawford, Vincent P. & Broseta, Bruno, 1998. "Cognition and Behavior in Normal-Form Games: An Experimental Study," University of California at San Diego, Economics Working Paper Series qt1vn4h7x5, Department of Economics, UC San Diego.
- Lenzo, Justin & Sarver, Todd, 2006. "Correlated equilibrium in evolutionary models with subpopulations," Games and Economic Behavior, Elsevier, vol. 56(2), pages 271-284, August.
- Ohtsubo, Yohsuke & Rapoport, Amnon, 2006. "Depth of reasoning in strategic form games," The Journal of Socio-Economics, Elsevier, vol. 35(1), pages 31-47, February.
- Zambrano, Eduardo, 2008. "Epistemic conditions for rationalizability," Games and Economic Behavior, Elsevier, vol. 63(1), pages 395-405, May.
- Moldoveanu, Mihnea & Stevenson, Howard, 2001. "The self as a problem: the intra-personal coordination of conflicting desires," The Journal of Socio-Economics, Elsevier, vol. 30(4), pages 295-330.
- J. Van Huyck & R. Battalio & F. Rankin, 1996. "On the Evolution of Convention: Evidence from Coordination Games," Levine's Working Paper Archive 548, David K. Levine.
- Moscati Ivan, 2009. "Interactive and common knowledge in the state-space model," CESMEP Working Papers 200903, University of Turin.
- Fox, Craig R. & Weber, Martin, 2002. "Ambiguity Aversion, Comparative Ignorance, and Decision Context," Organizational Behavior and Human Decision Processes, Elsevier, vol. 88(1), pages 476-498, May.
- Kin Chung Lo, 1995.
"Equilibrium in Beliefs Under Uncertainty,"
ecpap-95-02, University of Toronto, Department of Economics.
- Kin Chung Lo, 1998. "Epistemic Conditions for Agreement and Stochastic Independence of epsilon-Contaminated Beliefs," Working Papers 1998_02, York University, Department of Economics.
- Stahl, Dale O., 1995. "Lexicographic rationalizability and iterated admissibility," Economics Letters, Elsevier, vol. 47(2), pages 155-159, February.
- Heinemann, Frank & Illing, Gerhard, 2002. "Speculative attacks: unique equilibrium and transparency," Journal of International Economics, Elsevier, vol. 58(2), pages 429-450, December.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jane Voros) or (Michael P. Albert).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.