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A Note on Rationalizability and Restrictions on Beliefs

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  • Cappelletti Giuseppe

    (Banca d’Italia)

Abstract

Rationalizability is a widely accepted solution concept in the study of strategic-form games with complete information and is fully characterized in terms of assumptions on the rationality of the players and common certainty of rationality.Battigalli and Siniscalchi extend rationalizability taking as given some exogenous restrictions on players' beliefs and derive the solution concept called ?-rationalizability. This new solution concept has been applied to games with incomplete information as well as dynamic games.On this note, I focus on games with incomplete information and characterize ?-rationalizability with a new notion of iterative dominance that is able to capture the additional hypothesis on players' beliefs.

Suggested Citation

  • Cappelletti Giuseppe, 2010. "A Note on Rationalizability and Restrictions on Beliefs," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 10(1), pages 1-13, September.
  • Handle: RePEc:bpj:bejtec:v:10:y:2010:i:1:n:40
    DOI: 10.2202/1935-1704.1676
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    Cited by:

    1. Battigalli Pierpaolo & Prestipino Andrea, 2013. "Transparent Restrictions on Beliefs and Forward-Induction Reasoning in Games with Asymmetric Information," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 13(1), pages 1-53, May.

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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