Prudent Rationalizability in Generalized Extensive-Form Games with Unawareness

Burkhard Schipper, Martin Meier and Aviad Heifetz
Additional contact information
Aviad Heifetz: Department of Economics, University of California Davis

No 332, Working Papers from University of California, Davis, Department of Economics

Abstract: 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 procedure, for each tree and each information set of a player a surviving strategy of hers is required to be rational vis-a-vis a belief system with a full-support belief on the opponents' previously surviving strategies that reach that information set. We demonstrate the applicability of prudent rationalizability. In games of disclosure of verifiable information, we show that prudent rationalizability yields unraveling under full awareness but unraveling might fail under unawareness. We compare prudent rationalizability to extensive-form rationalizability. We show that prudent rationalizability may not refine extensive-form rationalizability strategies but conjecture that the paths induced by prudent rationalizable strategy profiles (weakly) refine the set of paths induced by extensive-form rationalizable strategies.

Keywords: Caution; extensive-form rationalizability; unawareness; disclosure; verifiable information; persuasion games; iterated admissibility; common strong cautious belief in rationality (search for similar items in EconPapers)
JEL-codes: C72 D83 (search for similar items in EconPapers)
Pages: 30
Date: 2019-08-28
New Economics Papers: this item is included in nep-gth, nep-hpe and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://repec.dss.ucdavis.edu/files/FvTJ2QuiUpSkvBuXMonVxQDu/prudrat20190617.pdf (application/pdf)

Related works:
Journal Article: Prudent Rationalizability in Generalized Extensive-form Games with Unawareness (2021)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cda:wpaper:332

Access Statistics for this paper

More papers in Working Papers from University of California, Davis, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Letters and Science IT Services Unit ().