Forward induction reasoning revisited

Pierpaolo Battigalli; Amanda Friedenberg

doi:10.3982/TE598

Forward induction reasoning revisited

Pierpaolo Battigalli, Amanda Friedenberg

Economics

Research output: Contribution to journal › Article › peer-review

37 Scopus citations

Abstract

Battigalli and Siniscalchi (2002) formalize the idea of forward induction reasoning as "rationality and common strong belief of rationality" (RCSBR). Here we study the behavioral implications of RCSBR across all type structures. Formally, we show that RCSBR is characterized by a solution concept we call extensive form best response sets (EFBRS's). It turns out that the EFBRS concept is equivalent to a concept already proposed in the literature, namely directed rationalizability (Battigalli and Siniscalchi 2003). We conclude by applying the EFBRS concept to games of interest.

Original language	English (US)
Pages (from-to)	57-98
Number of pages	42
Journal	Theoretical Economics
Volume	7
Issue number	1
DOIs	https://doi.org/10.3982/TE598
State	Published - Jan 2012

Keywords

Directed rationalizability
Epistemic game theory
Extensive form best response set
Forward induction

ASJC Scopus subject areas

Economics, Econometrics and Finance(all)
General Economics, Econometrics and Finance

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Forward induction reasoning revisited

Abstract

Keywords

ASJC Scopus subject areas

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