In this paper we want to shed some light on what we mean by backward induction and forward induction reasoning in dynamic games. To that purpose, we take the concepts of common belief in future rationality (Perea [1]) and extensive form rationalizability (Pearce [2], Battigalli [3], Battigalli...

Type structures are a simple device to describe higher-order beliefs. But how can we check whether two types generate the same belief hierarchy? This paper generalizes the concept of a type morphism and shows that one type structure is contained in another if and only if the former can be mapped...

We provide comparable algorithms for the Dekel-Fudenberg procedure, iterated admissibility, proper rationalizability and full permissibility by means of the concepts of preference restrictions and likelihood orderings. We apply the algorithms for comparing iterated admissibility, proper...

We extend the Ståhl-Rubinstein alternating-offer bargaining procedure to allow players, prior to each bargaining round, to simultaneously and visibly commit to some share of the pie. If commitment costs are small but increasing in the committed share, then the unique outcome consistent with...

Type structures are a simple device to describe higher-order beliefs. However, how can we check whether two types generate the same belief hierarchy? This paper generalizes the concept of a type morphism and shows that one type structure is contained in another if and only if the former can be...

The concepts of sequential and quasi-perfect rationalizability are defined in an epistemic model by means of lexicographic probabilities. These are non-equilibrium analogs to sequential and quasi-perfect equilibrium, for which epistemic characterizations are provided. The defined...

Do individuals choose how to a solve a dynamic game or is their mode of reasoning a type-like predisposition? We show experimentally that an individual’s propensity to forwardly or backwardly induct is a function of (i) her belief whether an opponent’s previous action was a trembling hand...

We model the decision problems faced by the members of societies whose new members are determined by vote. We adopt a number of simplifying assumptions: the founders and the candidates are fixed; the society operates for a fixed number of periods and holds elections at the beginning of each period;...

We study the possibilities for agenda manipulation under strategic voting for two prominent sequential voting procedures: the amendment procedure and the successive procedure. We show that a well known result for tournaments, namely that the successive procedure is (weakly) more manipulable than...

A decision maker may not perfectly maximize her preference over the feasible set. She may feel it is good enough to maximize her preference over a sufficiently large consideration set; or just require that her choice is sufficiently well-ranked (e.g., in the top quintile of options); or even...