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An Epistemic Characterisation of Extensive Form Rationalisability

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Listed:
  • Pierpaolo Battigalli

    (Princeton University and European University Institute)

  • Marciano Siniscalchi

    (Princeton University)

Abstract

We use an extensive form, universal type space to provide the following epistemic characterisation of extensive form rationalisability. Say that player i strongly believes event E if i is certain of E conditional on each of her information sets consistent with E. Our main contribution is to show that a strategy profile s is extensive form rationalisable if and only if there is a state in which s is played and (0) everybody is rational, (1) everybody strongly believes (0), (2) everybody strongly believes (0) & (1), (3) everybody strongly believes (0) & (1) & (2), .... This result also allows us to provide sufficient epistemic conditions for the backward induction outcome and to relate extensive form rationalisability and conditional common certainty of rationality.

Suggested Citation

  • Pierpaolo Battigalli & Marciano Siniscalchi, 1999. "An Epistemic Characterisation of Extensive Form Rationalisability," Working Papers 1999.25, Fondazione Eni Enrico Mattei.
    • Handle: RePEc:fem:femwpa:1999.25
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    References listed on IDEAS

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    More about this item

    Keywords

    Rationalisability; Extensive Form Games;

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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