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Agent Connectedness And Backward Induction

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  • CHRISTIAN W. BACH

    ()
    (Department of Quantitative Economics, Maastricht University, 6200 MD Maastricht, The Netherlands)

  • CONRAD HEILMANN

    ()
    (Erasmus Institute for Philosophy and Economics (EIPE), Faculty of Philosophy, Erasmus University Rotterdam, 3000 DR Rotterdam, The Netherlands)

Abstract

We conceive of a player in dynamic games as a set of agents, which are assigned the distinct tasks of reasoning and node-specific choices. The notion of agent connectedness measuring the sequential stability of a player over time is then modeled in an extended type-based epistemic framework. Moreover, we provide an epistemic foundation for backward induction in terms of agent connectedness. Besides, it is argued that the epistemic independence assumption underlying backward induction is stronger than usually presumed.

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Bibliographic Info

Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Game Theory Review.

Volume (Year): 13 (2011)
Issue (Month): 02 ()
Pages: 195-208

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Handle: RePEc:wsi:igtrxx:v:13:y:2011:i:02:p:195-208

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Related research

Keywords: Backward induction; epistemic independence; interactive epistemology; multiple-selves; Subject Classification: C72; Subject Classification: C73;

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