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

Forward induction reasoning revisited

Author

Listed:
  • ,

    (Department of Economics, Bocconi University)

  • ,

    (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

  • , & ,, 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. Reny Philip J., 1993. "Common Belief and the Theory of Games with Perfect Information," Journal of Economic Theory, Elsevier, vol. 59(2), pages 257-274, April.
    2. Martin J. Osborne & Ariel Rubinstein, 1994. "A Course in Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650401, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Asheim, G.B. & Dufwenberg, M., 1996. "Admissibility and Common Knowledge," Discussion Paper 1996-16, Tilburg University, Center for Economic Research.
    2. Dekel, Eddie & Siniscalchi, Marciano, 2015. "Epistemic Game Theory," Handbook of Game Theory with Economic Applications,, Elsevier.
    3. Asheim, Geir B., 2002. "On the epistemic foundation for backward induction," Mathematical Social Sciences, Elsevier, vol. 44(2), pages 121-144, November.
    4. Xiao Luo & Ben Wang, 2022. "An epistemic characterization of MACA," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 73(4), pages 995-1024, June.
    5. Shinji Yamashige, 1995. "Bayesian Approach with Finite Hierarchies of Beliefs: Bounded Rationality in Strategic Form Games," Working Papers yamashig-95-01, University of Toronto, Department of Economics.
    6. Shi, Yi & Deng, Yawen & Wang, Guoan & Xu, Jiuping, 2020. "Stackelberg equilibrium-based eco-economic approach for sustainable development of kitchen waste disposal with subsidy policy: A case study from China," Energy, Elsevier, vol. 196(C).
    7. Cheng‐Kuang Wu & Yi‐Ming Chen & Dachrahn Wu & Ching‐Lin Chi, 2020. "A Game Theory Approach for Assessment of Risk and Deployment of Police Patrols in Response to Criminal Activity in San Francisco," Risk Analysis, John Wiley & Sons, vol. 40(3), pages 534-549, March.
    8. Müller, Christoph, 2020. "Robust implementation in weakly perfect Bayesian strategies," Journal of Economic Theory, Elsevier, vol. 189(C).
    9. Hitoshi Matsushima, 2019. "Implementation without expected utility: ex-post verifiability," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 53(4), pages 575-585, December.
    10. Dasgupta Utteeyo, 2011. "Are Entry Threats Always Credible?," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 11(1), pages 1-41, December.
    11. Baran Han, 2018. "The role and welfare rationale of secondary sanctions: A theory and a case study of the US sanctions targeting Iran," Conflict Management and Peace Science, Peace Science Society (International), vol. 35(5), pages 474-502, September.
    12. Carlos Pimienta & Jianfei Shen, 2014. "On the equivalence between (quasi-)perfect and sequential equilibria," International Journal of Game Theory, Springer;Game Theory Society, vol. 43(2), pages 395-402, May.
    13. Asheim, Geir & Søvik, Ylva, 2003. "The semantics of preference-based belief operators," Memorandum 05/2003, Oslo University, Department of Economics.
    14. Wang, Yafeng & Graham, Brett, 2009. "Generalized Maximum Entropy estimation of discrete sequential move games of perfect information," MPRA Paper 21331, University Library of Munich, Germany.
    15. Karbowski, Adam, 2011. "O kilku modelach samolubnego karania w ekonomii behawioralnej [Evolution of altruism in the light of behavioral economics]," MPRA Paper 69604, University Library of Munich, Germany.
    16. Ricardo F. Reis & Phillip C. Stocken, 2007. "Strategic Consequences of Historical Cost and Fair Value Measurements," Contemporary Accounting Research, John Wiley & Sons, vol. 24(2), pages 557-584, June.
    17. Costello, Christopher & Molina, Renato, 2021. "Transboundary marine protected areas," Resource and Energy Economics, Elsevier, vol. 65(C).
    18. Martin Hellwig & Felix Bierbrauer, 2009. "Public Good Provision in a Large Economy," 2009 Meeting Papers 1062, Society for Economic Dynamics.
    19. Ünsal Özdilek, 2020. "Land and building separation based on Shapley values," Palgrave Communications, Palgrave Macmillan, vol. 6(1), pages 1-13, December.
    20. Arantza Estévez-Fernández & Peter Borm & M. Gloria Fiestras-Janeiro, 2020. "Nontransferable utility bankruptcy games," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 28(1), pages 154-177, April.

    More about this item

    Keywords

    Epistemic game theory; forward induction; extensive form best response set; directed rationalizability;
    All these keywords.

    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.

    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 bibliographic 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.

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

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.