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Comprehensive rationalizability

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

Abstract

We present a new solution concept for strategic games called comprehensive rationalizability that embodies a new version of “common cautious belief in rationality” based on a sound epistemic characterization in a universal type space. Differently from existing iterative strategy elimination procedures in the literature, it should rather be viewed as an iterative strategy demotion procedure as it requires some memory of previously discarded strategies. It refines rationalizability, but it neither refines nor is refined by iterated admissibility. Nevertheless, it coincides with iterated admissibility in many relevant economic applications.

Suggested Citation

  • Heifetz, Aviad & Meier, Martin & Schipper, Burkhard C., 2019. "Comprehensive rationalizability," Games and Economic Behavior, Elsevier, vol. 116(C), pages 185-202.
  • Handle: RePEc:eee:gamebe:v:116:y:2019:i:c:p:185-202
    DOI: 10.1016/j.geb.2019.05.002
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    Cited by:

    1. Ziegler, Gabriel & Zuazo-Garin, Peio, 2020. "Strategic cautiousness as an expression of robustness to ambiguity," Games and Economic Behavior, Elsevier, vol. 119(C), pages 197-215.
    2. Catonini, Emiliano & De Vito, Nicodemo, 2020. "Weak belief and permissibility," Games and Economic Behavior, Elsevier, vol. 120(C), pages 154-179.
    3. Shuige Liu, 2021. "Characterizing permissibility, proper rationalizability, and iterated admissibility by incomplete information," International Journal of Game Theory, Springer;Game Theory Society, vol. 50(1), pages 119-148, March.

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    More about this item

    Keywords

    Common assumption of rationality; Common belief in rationality; Iterated admissibility; Rationalizability; Lexicographic belief systems;
    All these keywords.

    JEL classification:

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

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