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Dynamic Unawareness and Rationalizable Behavior

  • Martin Meier
  • Burkhard C. Schipper
  • Aviad Heifetz

    (Department of Economics, University of California Davis)

We define generalized extensive-form games which allow for mutual unawareness of actions. We extend Pearce's (1984) notion of extensive-form (correlated) rationalizability to this setting, explore its properties and prove existence. We define also a new variant of this solution concept, prudent rationalizability, which refines the set of outcomes induced by extensive-form rationalizable strategies. Finally, we define the normal form of a generalized extensive-form game, and characterize in it extensive-form rationalizability by iterative conditional dominance.

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File URL: http://wp.econ.ucdavis.edu/09-10.pdf
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Paper provided by University of California, Davis, Department of Economics in its series Working Papers with number 910.

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Length: 57
Date of creation: 29 Oct 2009
Date of revision:
Handle: RePEc:cda:wpaper:09-10
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  18. Aviad Heifetz & Martin Meier & Burkhard Schipper, 2011. "Prudent Rationalizability in Generalized Extensive-Form Games," Working Papers 114, University of California, Davis, Department of Economics.
  19. Burkhard Schipper & Hee Yeul Woo, 2012. "Political Awareness and Microtargeting of Voters in Electoral Competition," Working Papers 124, University of California, Davis, Department of Economics.
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