Heifetz, Aviad (contributor); Pauzner, Ady (contributor) - 2000 - [Elektronische Ressource]
Abstract
In extensive form games of complete information, common knowledge of ra-
tionality implies the backward induction …
other words, common knowledge of rationality is replaced by common certainty that
with some small probability, the other …, when ε = 0, we obtain the no-cooperation
backward induction outcome.
2
knowledge of rationality case. Kreps, Milgrom …