Plausibility orderings in dynamic games

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Abstract

In this paper we explore game-theoretic reasoning in dynamic games within the framework of belief revision theory. More precisely, we focus on the forward induction concept of ‘common strong belief in rationality’ (Battigalli and Siniscalchi (2002) and the backward induction concept of ‘common belief in future rationality’ (Baltag et al. 2009; Perea 2014). For both concepts we investigate whether the entire collection of selected belief revision policies for a player can be characterized by a unique plausibility ordering. We find that this is indeed possible for ‘common strong belief in rationality’, whereas this may be impossible in some games for ‘common belief in future rationality’.
Original languageEnglish
Pages (from-to)331-364
Number of pages34
JournalEconomics and Philosophy
Volume30
Issue number3
Early online date18 Sep 2014
DOIs
Publication statusPublished - Nov 2014

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