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Amissibility and Common Belief

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Author Info
Asheim, Geir B. () (Department of Economics ,University of Oslo)
Dufwenberg, Martin (Dept. of Economics, Stockholm University)

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Abstract

The concept of ‘fully permissible sets ’ is defined by an algorithm that eliminate strategy subset . It is characterized as choice sets when there is common certain belief of the event that each player prefer one strategy to another if and only if the former weakly dominate the latter on the sets of all opponent strategie or on the union of the choice sets that are deemed possible for the opponent. the concept refines the Dekel-Fudenberg procedure and captures aspects of forward induction.

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Publisher Info
Paper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 2000:6.

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Length: 28 pages
Date of creation: 29 Feb 2000
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Handle: RePEc:hhs:sunrpe:2000_0006

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Related research
Keywords: Admissibility; Denkel-Fudenberg; common belief;

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Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Asheim,G.B., 1999. "Proper consistency," Memorandum 31/1999, Oslo University, Department of Economics. [Downloadable!]
    Other versions:
  2. Battigalli, Pierpaolo, 1996. "Strategic Rationality Orderings and the Best Rationalization Principle," Games and Economic Behavior, Elsevier, vol. 13(2), pages 178-200, April. [Downloadable!] (restricted)
  3. Tan, Tommy Chin-Chiu & da Costa Werlang, Sergio Ribeiro, 1988. "The Bayesian foundations of solution concepts of games," Journal of Economic Theory, Elsevier, vol. 45(2), pages 370-391, August. [Downloadable!] (restricted)
  4. P. Battigalli & M. Siniscalchi, 1999. "Interactive Beliefs and Forward Induction," Princeton Economic Theory Papers 99f3, Economics Department, Princeton University.
    Other versions:
  5. Christian Ewerhart, 1998. "Rationality and the definition of consistent pairs," International Journal of Game Theory, Springer, vol. 27(1), pages 49-59. [Downloadable!] (restricted)
  6. Asheim,G.B., 1999. "On the epistemic foundation for backward induction," Memorandum 30/1999, Oslo University, Department of Economics. [Downloadable!]
    Other versions:
  7. van Damme, Eric, 1989. "Stable equilibria and forward induction," Journal of Economic Theory, Elsevier, vol. 48(2), pages 476-496, August. [Downloadable!] (restricted)
    Other versions:
  8. Samuelson, Larry, 1992. "Dominated strategies and common knowledge," Games and Economic Behavior, Elsevier, vol. 4(2), pages 284-313, April. [Downloadable!] (restricted)
  9. Dekel, Eddie & Fudenberg, Drew, 1990. "Rational behavior with payoff uncertainty," Journal of Economic Theory, Elsevier, vol. 52(2), pages 243-267, December. [Downloadable!] (restricted)
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  10. Bernheim, B Douglas, 1984. "Rationalizable Strategic Behavior," Econometrica, Econometric Society, vol. 52(4), pages 1007-28, July. [Downloadable!] (restricted)
  11. Samuelson, L., 1991. "Dominated Strategies and Common Knowledge," Papers 9110, Tilburg - Center for Economic Research.
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  12. Asheim,G.B. & Dufwenberg,M., 2000. "Deductive reasoning in extensive games," Memorandum 08/2000, Oslo University, Department of Economics. [Downloadable!]
    Other versions:
  13. Pearce, David G, 1984. "Rationalizable Strategic Behavior and the Problem of Perfection," Econometrica, Econometric Society, vol. 52(4), pages 1029-50, July. [Downloadable!] (restricted)
  14. Rajan, Uday, 1998. "Trembles in the Bayesian Foundations of Solution Concepts of Games," Journal of Economic Theory, Elsevier, vol. 82(1), pages 248-266, September. [Downloadable!] (restricted)
  15. Epstein, Larry G & Wang, Tan, 1996. ""Beliefs about Beliefs" without Probabilities," Econometrica, Econometric Society, vol. 64(6), pages 1343-73, November. [Downloadable!] (restricted)
  16. Hurkens, Sjaak, 1996. "Multi-sided Pre-play Communication by Burning Money," Journal of Economic Theory, Elsevier, vol. 69(1), pages 186-197, April. [Downloadable!] (restricted)
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  17. Borgers, Tilman & Samuelson, Larry, 1992. ""Cautious" Utility Maximization and Iterated Weak Dominance," International Journal of Game Theory, Springer, vol. 21(1), pages 13-25.
  18. Blume, Lawrence & Brandenburger, Adam & Dekel, Eddie, 1991. "Lexicographic Probabilities and Choice under Uncertainty," Econometrica, Econometric Society, vol. 59(1), pages 61-79, January. [Downloadable!] (restricted)
  19. Epstein, Larry G., 1997. "Preference, Rationalizability and Equilibrium," Journal of Economic Theory, Elsevier, vol. 73(1), pages 1-29, March. [Downloadable!] (restricted)
  20. Blume, Lawrence & Brandenburger, Adam & Dekel, Eddie, 1991. "Lexicographic Probabilities and Equilibrium Refinements," Econometrica, Econometric Society, vol. 59(1), pages 81-98, January. [Downloadable!] (restricted)
  21. Brandenburger Adam & Dekel Eddie, 1993. "Hierarchies of Beliefs and Common Knowledge," Journal of Economic Theory, Elsevier, vol. 59(1), pages 189-198, February. [Downloadable!] (restricted)
  22. Battigalli, Pierpaolo, 1997. "On Rationalizability in Extensive Games," Journal of Economic Theory, Elsevier, vol. 74(1), pages 40-61, May. [Downloadable!] (restricted)
  23. Borgers Tilman, 1994. "Weak Dominance and Approximate Common Knowledge," Journal of Economic Theory, Elsevier, vol. 64(1), pages 265-276, October. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Dufwenberg, Martin & Gneezy, Uri & Goeree, Jacob K. & Nagel, Rosemarie, 2002. "Price Floors and Competition," Research Papers in Economics 2002:13, Stockholm University, Department of Economics. [Downloadable!]
    Other versions:
  2. Asheim,G.B. & Dufwenberg,M., 2000. "Deductive reasoning in extensive games," Memorandum 08/2000, Oslo University, Department of Economics. [Downloadable!]
    Other versions:
  3. Geir B. Asheim, 2000. "Proper Consistency," Econometric Society World Congress 2000 Contributed Papers 0193, Econometric Society. [Downloadable!]
    Other versions:
  4. Asheim, Geir & Søvik, Ylva, 2003. "The semantics of preference-based belief operators," Memorandum 05/2003, Oslo University, Department of Economics. [Downloadable!]
  5. Asheim,G.B., 1999. "On the epistemic foundation for backward induction," Memorandum 30/1999, Oslo University, Department of Economics. [Downloadable!]
    Other versions:
  6. Asheim,G.B., 2000. "Deriving belief operators from preferences," Memorandum 25/2000, Oslo University, Department of Economics. [Downloadable!]
  7. Robin Cubitt & Robert Sugden, 2005. "Common reasoning in games: a resolution of the paradoxes of ‘common knowledge of rationality’," Discussion Papers 2005-17, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham. [Downloadable!]
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