Comprehensive rationalizability

Aviad Heifetz, Martin Meier and Burkhard Schipper

Games and Economic Behavior, 2019, vol. 116, issue C, 185-202

Abstract: We present a new solution concept for strategic games called comprehensive rationalizability that embodies a new version of “common cautious belief in rationality” based on a sound epistemic characterization in a universal type space. Differently from existing iterative strategy elimination procedures in the literature, it should rather be viewed as an iterative strategy demotion procedure as it requires some memory of previously discarded strategies. It refines rationalizability, but it neither refines nor is refined by iterated admissibility. Nevertheless, it coincides with iterated admissibility in many relevant economic applications.

Keywords: Common assumption of rationality; Common belief in rationality; Iterated admissibility; Rationalizability; Lexicographic belief systems (search for similar items in EconPapers)
JEL-codes: C72 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Working Paper: Comprehensive Rationalizability (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:116:y:2019:i:c:p:185-202

DOI: 10.1016/j.geb.2019.05.002

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