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Common Reasoning In Games: A Lewisian Analysis Of Common Knowledge Of Rationality

Author

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  • Cubitt, Robin P.
  • Sugden, Robert

Abstract

We present a new class of models of players’ reasoning in non-cooperative games, inspired by David Lewis's account of common knowledge. We argue that the models in this class formalize common knowledge of rationality in a way that is distinctive, in virtue of modelling steps of reasoning; and attractive, in virtue of being able to represent coherently common knowledge of any consistent standard of individual decision-theoretic rationality. We contrast our approach with that of Robert Aumann (1987), arguing that the former avoids and diagnoses certain paradoxes to which the latter may give rise when extended in particular ways.

Suggested Citation

  • Cubitt, Robin P. & Sugden, Robert, 2014. "Common Reasoning In Games: A Lewisian Analysis Of Common Knowledge Of Rationality," Economics and Philosophy, Cambridge University Press, vol. 30(3), pages 285-329, November.
    • Handle: RePEc:cup:ecnphi:v:30:y:2014:i:03:p:285-329_00
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    Cited by:

    1. Michiru Nagatsu & Karen Larsen & Mia Karabegovic & Marcell Székely & Dan Mønster & John Michael, 2018. "Making good cider out of bad apples --- Signaling expectations boosts cooperation among would-be free riders," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 13(1), pages 137-149, January.
    2. Cyril Hédoin, 2016. "Community-Based Reasoning in Games: Salience, Rule-Following, and Counterfactuals," Games, MDPI, vol. 7(4), pages 1-17, November.
    3. Ashton T. Sperry-Taylor, 2017. "Strategy Constrained by Cognitive Limits, and the Rationality of Belief-Revision Policies," Games, MDPI, vol. 8(1), pages 1-13, January.

    More about this item

    JEL classification:

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

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