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We define a cautious version of extensive-form rationalizability for generalized extensive-form games with unawareness … that we call prudent rationalizability. It is an extensive-form analogue of iterated admissibility. In each round of the … set. We demonstrate the applicability of prudent rationalizability. In games of disclosure of verifiable information, we …
Persistent link: https://www.econbiz.de/10012905911
Information has played a central role in understanding why international negotiations may break down into costly conflict. Barring indivisibilities or commitment problems, the literature finds that war can only occur between rational unitary actors because of private information about...
Persistent link: https://www.econbiz.de/10013014320
This study examines how each player chooses her/his optimal action in "normal-form games with unawareness" by applying a "discovery process" to them. We show that if each player implements a best response to the opponents' immediately preceding plays, then any discovery process converges to a...
Persistent link: https://www.econbiz.de/10013237214
This paper discusses the importance of paradoxes of irrationality for managers by elaborating upon the rational basis for the adoption of non-equilibrium strategies in game theory. It does so by revisiting the one-shot Traveler's Dilemma game, proposing a solution which reconciles the anomaly...
Persistent link: https://www.econbiz.de/10012719536
) notion of extensive-form (correlated) rationalizability to this setting, explore its properties and prove existence …. -- Unawareness ; extensive-form games ; extensive-form rationalizability …
Persistent link: https://www.econbiz.de/10009542457
We define an extensive-form analogue of iterated admissibility, called Prudent Rationalizability (PR). In each round of … rationalizability ; caution ; extensive-form rationalizability ; extensive-form games ; unawareness, verifiable communication …
Persistent link: https://www.econbiz.de/10009544217
Battigalli and Siniscalchi (2002) formalize the idea of forward induction reasoning as "rationality and common strong … belief of rationality" (RCSBR). Here, we study the behavioral implications of RCSBR across all type structures. Formally, we … that the EFBRS concept is equivalent to a concept already proposed in the literature, namely Directed Rationalizability …
Persistent link: https://www.econbiz.de/10011690929
games and the solution concept of interim rationalizability. We construct the universal type space for rationalizability and …
Persistent link: https://www.econbiz.de/10011704466
We define a cautious version of extensive-form rationalizability for generalized extensive- form games with unawareness … that we call prudent rationalizability. It is an extensive-form analogue of iterated admissibility. In each round of the … set. We demonstrate the applicability of prudent rationalizability. In games of disclosure of verifiable information, we …
Persistent link: https://www.econbiz.de/10012101418
. Iterative admissibility also provides predictions for every finite level of reasoning about rationality. Overall we observe …
Persistent link: https://www.econbiz.de/10011811807