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Amissibility and Common Belief

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  • Asheim, Geir B.

    ()
    (Department of Economics ,University of Oslo)

  • Dufwenberg, Martin

    (Dept. of Economics, Stockholm University)

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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Bibliographic 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
Date of revision:
Handle: RePEc:hhs:sunrpe:2000_0006

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Postal: Department of Economics, Stockholm, S-106 91 Stockholm, Sweden
Phone: +46 8 16 20 00
Fax: +46 8 16 14 25
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Web page: http://www.ne.su.se/
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Keywords: Admissibility; Denkel-Fudenberg; common belief;

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References

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  1. van Damme, Eric, 1989. "Stable equilibria and forward induction," Journal of Economic Theory, Elsevier, vol. 48(2), pages 476-496, August.
  2. Samuelson, L., 1989. "Dominated Strategies And Common Knowledge," Papers 1-89-3, Pennsylvania State - Department of Economics.
  3. Hurkens, S., 1993. "Multi-Sided Pre-Play Communication By Burning Money," Papers 9319, Tilburg - Center for Economic Research.
  4. Geir B. Asheim, 2002. "Proper rationalizability in lexicographic beliefs," International Journal of Game Theory, Springer, vol. 30(4), pages 453-478.
  5. Asheim,G.B. & Dufwenberg,M., 2000. "Deductive reasoning in extensive games," Memorandum 08/2000, Oslo University, Department of Economics.
  6. T. Börgers, 2010. "Weak Dominance and Approximate Common Knowledge," Levine's Working Paper Archive 378, David K. Levine.
  7. Epstein, Larry G & Wang, Tan, 1996. ""Beliefs about Beliefs" without Probabilities," Econometrica, Econometric Society, vol. 64(6), pages 1343-73, November.
  8. Battigalli, P. & Siniscalchi, M., 1999. "Interactive Beliefs and Forward Induction," Economics Working Papers eco99/15, European University Institute.
  9. Ben-Porath, Elchanan, 1997. "Rationality, Nash Equilibrium and Backwards Induction in Perfect-Information Games," Review of Economic Studies, Wiley Blackwell, vol. 64(1), pages 23-46, January.
  10. Epstein, Larry G., 1997. "Preference, Rationalizability and Equilibrium," Journal of Economic Theory, Elsevier, vol. 73(1), pages 1-29, March.
  11. D. B. Bernheim, 2010. "Rationalizable Strategic Behavior," Levine's Working Paper Archive 514, David K. Levine.
  12. Samuelson, Larry, 1992. "Dominated strategies and common knowledge," Games and Economic Behavior, Elsevier, vol. 4(2), pages 284-313, April.
  13. Battigalli, Pierpaolo & Siniscalchi, Marciano, 2002. "Strong Belief and Forward Induction Reasoning," Journal of Economic Theory, Elsevier, vol. 106(2), pages 356-391, October.
  14. Damme, E.E.C. van, 1989. "Stable equilibria and forward induction," Open Access publications from Tilburg University urn:nbn:nl:ui:12-154422, Tilburg University.
  15. Brandenburger Adam & Dekel Eddie, 1993. "Hierarchies of Beliefs and Common Knowledge," Journal of Economic Theory, Elsevier, vol. 59(1), pages 189-198, February.
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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. Asheim, Geir B., 2002. "On the epistemic foundation for backward induction," Mathematical Social Sciences, Elsevier, vol. 44(2), pages 121-144, November.
  19. Pearce, David G, 1984. "Rationalizable Strategic Behavior and the Problem of Perfection," Econometrica, Econometric Society, vol. 52(4), pages 1029-50, July.
  20. Blume, Lawrence & Brandenburger, Adam & Dekel, Eddie, 1991. "Lexicographic Probabilities and Choice under Uncertainty," Econometrica, Econometric Society, vol. 59(1), pages 61-79, January.
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  22. Basu, K. & Weibull, J., 1990. "Strategy Subsets Closed Under Rational Behavior," Papers 62, Princeton, Woodrow Wilson School - Discussion Paper.
  23. Marco Mariotti, 1997. "Decisions in games: why there should be a special exemption from Bayesian rationality," Journal of Economic Methodology, Taylor & Francis Journals, vol. 4(1), pages 43-60.
  24. Christian Ewerhart, 1998. "Rationality and the definition of consistent pairs," International Journal of Game Theory, Springer, vol. 27(1), pages 49-59.
  25. Blume, Lawrence & Brandenburger, Adam & Dekel, Eddie, 1991. "Lexicographic Probabilities and Equilibrium Refinements," Econometrica, Econometric Society, vol. 59(1), pages 81-98, January.
  26. Asheim,G.B., 1999. "Proper consistency," Memorandum 31/1999, Oslo University, Department of Economics.
  27. 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.
  28. Battigalli, Pierpaolo, 1997. "On Rationalizability in Extensive Games," Journal of Economic Theory, Elsevier, vol. 74(1), pages 40-61, May.
  29. 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.
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