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Games in Preference Form and Preference Rationalizability

Author

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  • Stephen Morris

    (Princeton University)

  • Satoru Takahashi

    (National University of Singapore)

Abstract

We introduce a game in preference form, which consists of a game form and a preference structure, and define preference rationalizability that allows for each player's ex-post preferences over outcomes to depend on opponents' actions. We show that preference rationalizability is invariant to redundant types and states as long as all players have simplex restrictions on their ex-post preferences. We analyze the relationship between preference-form games and conventional payoff--form games. In particular, even if all players have simplex restrictions, we argue that there are multiple payoff-form games that correspond to a given preference-form game, and show that only one of them has the set of interim correlated rationalizable actions equal to the set of preference rationalizable actions in the preference-form game. We also discuss cases where the simplex assumption is violated.

Suggested Citation

  • Stephen Morris & Satoru Takahashi, 2012. "Games in Preference Form and Preference Rationalizability," Working Papers 1420, Princeton University, Department of Economics, Econometric Research Program..
  • Handle: RePEc:pri:metric:wp043_2012_morris_takahashi.pdf
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    References listed on IDEAS

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    Cited by:

    1. V. K. Oikonomou & J. Jost, 2020. "Periodic Strategies II: Generalizations and Extensions," Papers 2005.12832, arXiv.org.
    2. Grant, Simon & Meneghel, Idione & Tourky, Rabee, 2013. "Savage Games: A Theory of Strategic Interaction with Purely Subjective Uncertainty," Risk and Sustainable Management Group Working Papers 151501, University of Queensland, School of Economics.
    3. Bergemann, Dirk & Morris, Stephen & Takahashi, Satoru, 2017. "Interdependent preferences and strategic distinguishability," Journal of Economic Theory, Elsevier, vol. 168(C), pages 329-371.

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    More about this item

    Keywords

    game theory; simplex assumption;

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General

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