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A note on rationalizability and restrictions on beliefs


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  • Giuseppe Cappelletti

    (Bank of Italy)

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    Rationalizability is a widely accepted solution concept in the study of strategic form game with complete information and is fully characterized in terms of assumptions on the rationality of the players and common certainty of rationality. Battigalli and Siniscalchi extend rationalizability and derive the solution concept called Δ-rationalizability. Their analysis is based on the following assumptions: (a) players are rational; (b) their first-order beliefs satisfy some restrictions; and (c) there is common belief of (a) and (b). In this note I focus on games with complete information and I characterize Δ-rationalizability with a new notion of iterative dominance which is able to capture the additional hypothesis on players' beliefs.

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    Bibliographic Info

    Paper provided by Bank of Italy, Economic Research and International Relations Area in its series Temi di discussione (Economic working papers) with number 757.

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    Date of creation: Apr 2010
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    Handle: RePEc:bdi:wptemi:td_757_10

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    Keywords: rationalizability; strategic form game; complete information;

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