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Rationalizability in large games

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  • Haomiao Yu

Abstract

This paper characterizes both point-rationalizability and rationalizability in large games when societal responses are formulated as distributions or averages of individual actions. The sets of point-rationalizable and rationalizable societal responses are defined and shown to be convex, compact and equivalent to those outcomes that survive iterative elimination of never best responses, under point-beliefs and probabilistic beliefs, respectively. Given the introspection and mentalizing that rationalizability notions presuppose, one motivation behind the work is to examine their viability in situations where the terms rationality and full information can be given a more parsimonious, and thereby a more analytically viable, expression. Copyright Springer-Verlag Berlin Heidelberg 2014

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  • Haomiao Yu, 2014. "Rationalizability in large games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 55(2), pages 457-479, February.
    • Handle: RePEc:spr:joecth:v:55:y:2014:i:2:p:457-479
    DOI: 10.1007/s00199-013-0756-0
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    Cited by:

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    More about this item

    Keywords

    Large games; Rationalizability; Point-rationalizability; Closed under rational behavior (CURB); Societal response; C72; D80; C65;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools

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