An Epistemic Characterisation of Extensive Form Rationalisability
AbstractWe use an extensive form, universal type space to provide the following epistemic characterisation of extensive form rationalisability. Say that player i strongly believes event E if i is certain of E conditional on each of her information sets consistent with E. Our main contribution is to show that a strategy profile s is extensive form rationalisable if and only if there is a state in which s is played and (0) everybody is rational, (1) everybody strongly believes (0), (2) everybody strongly believes (0) & (1), (3) everybody strongly believes (0) & (1) & (2), .... This result also allows us to provide sufficient epistemic conditions for the backward induction outcome and to relate extensive form rationalisability and conditional common certainty of rationality.
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Bibliographic InfoPaper provided by Fondazione Eni Enrico Mattei in its series Working Papers with number 1999.25.
Date of creation: Feb 1999
Date of revision:
Rationalisability; Extensive Form Games;
Other versions of this item:
- Battigalli, Pierpaolo & Siniscalchi, Marciano, 1997. "An Epistemic Characterization of Extensive Form Rationalizability," Working Papers 1009, California Institute of Technology, Division of the Humanities and Social Sciences.
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-06-13 (All new papers)
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