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probability of survival into the next round of play. This is directly relevant in banking, where a banks' current lending and … pricing decisions determines its future probability of default. In technical terms, our innovation is to consider a multi …
Persistent link: https://www.econbiz.de/10011242427
This volume contains eight papers written by Adam Brandenburger and his co-authors over a period of 25 years. These papers are part of a program to reconstruct game theory in order to make how players reason about a game a central feature of the theory. The program — now called epistemic game...
Persistent link: https://www.econbiz.de/10011010976
Sufficient conditions for Nash equilibrium in an n-person game are given in terms of what the players know and believe — about the game, and about each other's rationality, actions, knowledge, and beliefs. Mixed strategies are treated not as conscious randomizations, but as conjectures, on the...
Persistent link: https://www.econbiz.de/10011206381
Suppose that each player in a game is rational, each player thinks the other players are rational, and so on. Also, suppose that rationality is taken to incorporate an admissibility requirement — that is, the avoidance of weakly dominated strategies. Which strategies can be played? We provide...
Persistent link: https://www.econbiz.de/10011206393
Game-theoretic analysis often leads to consideration of an infinite hierarchy of beliefs for each player. Harsanyi suggested that such a hierarchy of beliefs could be summarized in a single entity, called the player's type. This chapter provides an elementary construction, complementary to the...
Persistent link: https://www.econbiz.de/10011206453
Best-response sets (Pearce [1984]) characterize the epistemic condition of “rationality and common belief of rationality.” When rationality incorporates a weak-dominance (admissibility) requirement, the self-admissible set (SAS) concept (Brandenburger, Friedenberg, and Keisler [2008])...
Persistent link: https://www.econbiz.de/10011206587
well defined conditional probabilities, that is, given any event a conditional probability which is concentrated on that … beliefs; probability-theoretic properties of the representations; and the relationships with other recent extensions of …
Persistent link: https://www.econbiz.de/10011206642
We discuss the unity between the two standard approaches to noncooperative solution concepts for games. The decision-theoretic approach starts from the assumption that the rationality of the players is common knowledge. This leads to the notion of correlated rationalizability. It is shown that...
Persistent link: https://www.econbiz.de/10011206697
Correlations arise naturally in noncooperative games, e.g., in the equivalence between undominated and optimal strategies in games with more than two players. But the noncooperative assumption is that players do not coordinate their strategy choices, so where do these correlations come from? The...
Persistent link: https://www.econbiz.de/10011206775
A paradox of self-reference in beliefs in games is identified, which yields a game-theoretic impossibility theorem akin to Russell's Paradox. An informal version of the paradox is that the following configuration of beliefs is impossible:Ann believes that Bob assumes thatAnn believes that Bob's...
Persistent link: https://www.econbiz.de/10011206790