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Sophisticated Strategic Choice

Author

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  • Somdeb Lahiri

    (School of Petroleum Management, Pandit Deendayal Petroleum University, Raisan, Gandhinagar 382007, Gujarat, India)

Abstract

We consider two-stage strategic choice problems in which a decision maker first chooses a strategy and subsequently an alternative from a nonempty subset of feasible alternatives that may depend on the strategy chosen in the first period. The preferences over alternatives that the decision maker starts out with may change after a strategy is chosen and the new preferences may depend on the chosen strategy. We consider sophisticated trajectories and provide conditions under which such trajectories exist. Then we consider problems with a finite number of strategies and alternatives. We define the sophisticated choice function and provide characterizations for its rationalizability.

Suggested Citation

  • Somdeb Lahiri, 2018. "Sophisticated Strategic Choice," New Mathematics and Natural Computation (NMNC), World Scientific Publishing Co. Pte. Ltd., vol. 14(02), pages 277-294, July.
    • Handle: RePEc:wsi:nmncxx:v:14:y:2018:i:02:n:s1793005718500175
    DOI: 10.1142/S1793005718500175
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    References listed on IDEAS

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