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Comprehensive Rationalizability

Author

Listed:
  • Burkhard Schipper
  • Martin Meier
  • Aviad Heifetz

    (Department of Economics, University of California Davis)

Abstract

We present a new solution concept for strategic games called comprehensive rationalizability that embodies "common cautious belief in rationality" based on a sound epistemic characterization in a universal type space. 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

  • Burkhard Schipper & Martin Meier & Aviad Heifetz, 2017. "Comprehensive Rationalizability," Working Papers 186, University of California, Davis, Department of Economics.
  • Handle: RePEc:cda:wpaper:186
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    File URL: https://repec.dss.ucdavis.edu/files/M7vK5rHE6kxDAmAZidxZAwoG/17-4.pdf
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    References listed on IDEAS

    as
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    Cited by:

    1. 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.
    2. 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.
    3. Catonini, Emiliano & De Vito, Nicodemo, 2020. "Weak belief and permissibility," Games and Economic Behavior, Elsevier, vol. 120(C), pages 154-179.

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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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