Admissibility and event-rationality

We develop an approach to providing epistemic conditions for admissible behavior in games. Instead of using lexicographic beliefs to capture infinitely less likely conjectures, we postulate that players use tie-breaking sets to help decide among strategies that are outcome-equivalent given their con...

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Bibliographic Details
Main Authors: Barelli, Paulo (Author), Galanis, Spyros (Author)
Format: Article
Language:English
Published: 2013-01.
Subjects:
Online Access:Get fulltext
LEADER 01396 am a22001333u 4500
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100 1 0 |a Barelli, Paulo  |e author 
700 1 0 |a Galanis, Spyros  |e author 
245 0 0 |a Admissibility and event-rationality 
260 |c 2013-01. 
856 |z Get fulltext  |u https://eprints.soton.ac.uk/71037/1/admissibility.pdf 
520 |a We develop an approach to providing epistemic conditions for admissible behavior in games. Instead of using lexicographic beliefs to capture infinitely less likely conjectures, we postulate that players use tie-breaking sets to help decide among strategies that are outcome-equivalent given their conjectures. A player is event-rational if she best responds to a conjecture and uses a list of subsets of the other players? strategies to break ties among outcome-equivalent strategies. Using type spaces to capture interactive beliefs, we show that event-rationality and common belief of event-rationality (RCBER) imply S?W, the set of admissible strategies that survive iterated elimination of dominated strategies. By strengthening standard belief to validated belief, we show that event-rationality and common validated belief of event-rationality (RCvBER) imply IA, the iterated admissible strategies. We show that in complete, continuous and compact type structures, RCBER and RCvBER are nonempty, hence providing epistemic criteria for S?W and IA. 
655 7 |a Article