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Dynamic Unawareness and Rationalizable Behavior

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  • Heifetz, Aviad
  • Meier, Martin
  • Schipper, Burkhard C

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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File URL: http://mpra.ub.uni-muenchen.de/18436/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 15058.

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Date of creation: 04 May 2009
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Handle: RePEc:pra:mprapa:15058

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Keywords: Unawareness; extensive-form games; extensive-form rationalizability; prudent rationalizability; iterative conditional dominance;

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References

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Citations

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Cited by:
  1. Simon Grant & John Quiggin, 2013. "Inductive reasoning about unawareness," Economic Theory, Springer, vol. 54(3), pages 717-755, November.
  2. Heifetz, Aviad & Meier, Martin & Schipper, Burkhard C., 2013. "Unawareness, beliefs, and speculative trade," Games and Economic Behavior, Elsevier, vol. 77(1), pages 100-121.
  3. Feinberg, Yossi, 2012. "Games with Unawareness," Research Papers 2122, Stanford University, Graduate School of Business.
  4. Spyros Galanis, 2013. "Unawareness of theorems," Economic Theory, Springer, vol. 52(1), pages 41-73, January.
  5. Grant, Simon & Quiggin, John, 2013. "Bounded awareness, heuristics and the Precautionary Principle," Journal of Economic Behavior & Organization, Elsevier, vol. 93(C), pages 17-31.
  6. Grant, Simon & Kline, Jeff & Quiggin, John, 2012. "Differential awareness, ambiguity, and incomplete contracts: a model of contractual disputes," Risk and Sustainable Management Group Working Papers 151200, University of Queensland, School of Economics.
  7. Burkhard Schipper & Hee Yeul Woo, 2014. "Political Awareness, Microtargeting of Voters, and Negative Electoral Campaigning," Working Papers 148, University of California, Davis, Department of Economics.
  8. Leandro Rêgo & Joseph Halpern, 2012. "Generalized solution concepts in games with possibly unaware players," International Journal of Game Theory, Springer, vol. 41(1), pages 131-155, February.
  9. Burkhard Schipper, 2010. "Revealed Unawareness," Working Papers 105, University of California, Davis, Department of Economics.
  10. Spyros Galanis, 2011. "Syntactic foundations for unawareness of theorems," Theory and Decision, Springer, vol. 71(4), pages 593-614, October.
  11. Schipper, Burkhard C, 2011. "Preference-Based Unawareness," MPRA Paper 30221, University Library of Munich, Germany.
  12. Heinsalu, Sander, 2014. "Universal type structures with unawareness," Games and Economic Behavior, Elsevier, vol. 83(C), pages 255-266.
  13. Gossner Olivier & Tsakas Elias, 2010. "A reasoning approach to introspection and unawareness," Research Memorandum 006, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).

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