IDEAS home Printed from https://ideas.repec.org/a/the/publsh/598.html
   My bibliography  Save this article

Forward induction reasoning revisited

Author

Listed:
  • Battigalli, Pierpaolo

    () (Department of Economics, Bocconi University)

  • Friedenberg, Amanda

    () (Department of Economics, Arizona State University)

Abstract

Battigalli and Siniscalchi (2002) formalize the idea of forward induction reasoning as "rationality and common strong belief of rationality" (RCSBR). Here, we study the behavioral implications of RCSBR across all type structures. Formally, we show that RCSBR is characterized by a solution concept we call Extensive Form Best Response Sets (EFBRS's). It turns out that the EFBRS concept is equivalent to a concept already proposed in the literature, namely Directed Rationalizability. (See Battigalli and Siniscalchi 2003.) We conclude by applying the EFBRS concept to games of interest.

Suggested Citation

  • Battigalli, Pierpaolo & Friedenberg, Amanda, 2012. "Forward induction reasoning revisited," Theoretical Economics, Econometric Society, vol. 7(1), January.
  • Handle: RePEc:the:publsh:598
    as

    Download full text from publisher

    File URL: http://econtheory.org/ojs/index.php/te/article/viewFile/20120057/6154/202
    Download Restriction: no

    References listed on IDEAS

    as
    1. Martin J. Osborne & Ariel Rubinstein, 1994. "A Course in Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650401, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Schipper, Burkhard C, 2018. "Discovery and Equilibrium in Games with Unawareness," MPRA Paper 86300, University Library of Munich, Germany.
    2. 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.
    3. Evdokimov, Piotr & Rustichini, Aldo, 2016. "Forward induction: Thinking and behavior," Journal of Economic Behavior & Organization, Elsevier, vol. 128(C), pages 195-208.
    4. Tsakas Elias, 2011. "Hierarchies of conditional beliefs derived from commonly known priors," Research Memorandum 021, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    5. Arieli, Itai & Aumann, Robert J., 2015. "The logic of backward induction," Journal of Economic Theory, Elsevier, vol. 159(PA), pages 443-464.
    6. Tsakas, Elias, 2014. "Epistemic equivalence of extended belief hierarchies," Games and Economic Behavior, Elsevier, vol. 86(C), pages 126-144.
    7. Zuazo-Garin, Peio, 2017. "Uncertain information structures and backward induction," Journal of Mathematical Economics, Elsevier, vol. 71(C), pages 135-151.
    8. Dufwenberg, Martin & Köhlin, Gunnar & Martinsson, Peter & Medhin, Haileselassie, 2016. "Thanks but no thanks: A new policy to reduce land conflict," Journal of Environmental Economics and Management, Elsevier, vol. 77(C), pages 31-50.
    9. repec:eee:jetheo:v:169:y:2017:i:c:p:489-516 is not listed on IDEAS
    10. Tsakas Elias, 2012. "Rational belief hierarchies," Research Memorandum 004, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
    11. Fudenberg, Drew & Kamada, Yuichiro, 2015. "Rationalizable partition-confirmed equilibrium," Theoretical Economics, Econometric Society, vol. 10(3), September.
    12. Pierpaolo Battigalli & Alfredo Di Tillio & Dov Samet, 2011. "Strategies and interactive beliefs in dynamic games," Working Papers 375, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
    13. Müller, Christoph, 2016. "Robust virtual implementation under common strong belief in rationality," Journal of Economic Theory, Elsevier, vol. 162(C), pages 407-450.
    14. Chen, Jing & Micali, Silvio, 2013. "The order independence of iterated dominance in extensive games," Theoretical Economics, Econometric Society, vol. 8(1), January.
    15. Amanda Friedenberg & Martin Meier, 2017. "The context of the game," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 63(2), pages 347-386, February.
    16. Dekel, Eddie & Siniscalchi, Marciano, 2015. "Epistemic Game Theory," Handbook of Game Theory with Economic Applications, Elsevier.

    More about this item

    Keywords

    Epistemic game theory; forward induction; extensive form best response set; directed rationalizability;

    JEL classification:

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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:the:publsh:598. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Martin J. Osborne). General contact details of provider: http://econtheory.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.