Backward Induction without Common Knowledge

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  • Cristina Bicchieri
چکیده

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TR-2010010: Robust Knowledge and Rationality

In 1995, Aumann proved that in games of perfect information, common knowledge of rationality yields backward induction. In 1998, Stalnaker provided an example of a game in which common knowledge of rationality, once belief revision is taken into account, does not yield backward induction. However, in some pertinent situations in this example, players are allowed to forfeit the rationality condi...

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تاریخ انتشار 2007