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Dynamic Unawareness and Rationalizable Behavior

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Author Info
Heifetz, Aviad (Open University of Israel)
Meier, Martin (Instituto de Analisis Economico, CSIC, Barcelona and Institut fur Hohere Studien, Vienna)
Schipper, Burkhard C. (University of California, Davis)
Abstract

We define generalized extensive-form games which allow for mutual unawareness of actions. We extend Pearce's (1984) notion of extensive-form (correlated) rationalizability to this setting, explore its properties and prove existence. We define also a new variant of this solution concept, prudent rationalizability, which refines the set of outcomes induced by extensive-form rationalizable strategies. Finally, we define the normal form of a generalized extensive-form game, and characterize in it extensive-form rationalizability by iterative conditional dominance.

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Paper provided by University of California at Davis, Department of Economics in its series Working Papers with number 09-10.

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Date of creation: May 2009
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Handle: RePEc:ecl:ucdeco:09-10

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C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General
D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information

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This page was last updated on 2009-12-2.

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