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I propose three modifications of Jackson's flexible network axiom (Jackson, 2005) when the structure of externalities across components have been identified. The first one takes into account the information about the externalities across components. The second one allows for coalitional...
Persistent link: https://www.econbiz.de/10008495013
We consider discounted repeated games in which players can voluntarily purchase information about the opponents' actions at past stages. Information about a stage can be bought at a fixed but arbitrary cost. Opponents cannot observe the information purchase by a player. For our main result, we...
Persistent link: https://www.econbiz.de/10005066766
Proper rationalizability ([Schuhmacher, 1999] and [Asheim, 2001]) is a concept in epistemic game theory based on the following two conditions: (a) a player should be cautious, that is, should not exclude any opponent's strategy from consideration; and (b) a player should respect the opponents'...
Persistent link: https://www.econbiz.de/10009195079
For dynamic games we consider the idea that a player, at every stage of the game, will always believe that his opponents will choose rationally in the future. This is the basis for the concept of common belief in future rationality, which we formalize within an epistemic model. We present an...
Persistent link: https://www.econbiz.de/10011049812