The concept of ‘fully permissible sets ’ is defined by an algorithm that eliminate strategy subset . It is characterized as choice sets when there is common certain belief of the event that each player prefer one strategy to another if and only if the former weakly dominate the latter on the...

We justify the application to extensive games of the concept of ‘fully permissible sets’, which corresponds to choice sets when there is common certain belief of the event that each player prefer one strategy to another if and only if the former weakly dominates the latter on the set of all...

The concept of ‘fully permissible sets’ is defined by an algorithm that eliminates strategy subsets. It is characterized as choice sets when there is common certain belief of the event that each player prefer one strategy to another if and only if the former weakly dominates the latter on...

Earlier contributions have shown that imposing common knowledge of rationality is problematic when rationality is defined as choosing an admissible best response. Here we instead impose common knowledge of rational reasoning and define the concept of rationalizable sets. General existence (for...

Earlier contributions have shown that imposing common knowledge of rationality is problematic when rationality is defined as choosing an admissible best response. Here we instead impose common knowledge of rational reasoning and define the concept of rationalizable sets. General existence (for...

We justify the application to extensive games of a model of deductive reasoning based on three key features: 'caution', 'full belief of opponent rationality', and 'no extraneous restrictions on beliefs'. We apply the model to several examples, and show that it yields novel economic insights. The...