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Qualitative analysis of common belief of rationality in strategic-form games

Author

Listed:
  • Giacomo Bonanno
  • Elias Tsakas

    (Department of Economics, University of California Davis)

Abstract

We study common belief of rationality in strategic-form games with ordinal utilities, employing a model of qualitative beliefs. We characterize the three main solution concepts for such games, viz., Iterated Deletion of Strictly Dominated Strategies (IDSDS), Iterated Deletion of Boergers-dominated Strategies (IDBS) and Iterated Deletion of Inferior Strategy Profiles (IDIP), by means of gradually restrictive properties imposed on the models of qualitative beliefs. As a corollary, we prove that IDIP refines IDBS, which refines IDSDS.

Suggested Citation

  • Giacomo Bonanno & Elias Tsakas, 2017. "Qualitative analysis of common belief of rationality in strategic-form games," Working Papers 181, University of California, Davis, Department of Economics.
    • Handle: RePEc:cda:wpaper:181
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    Qualitative likelihood relation; ordinal payoffs; common belief of rationality; iterative deletion procedures;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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