TY - JOUR
T1 - Characterizing permissibility, proper rationalizability, and iterated admissibility by incomplete information
AU - Liu, Shuige
N1 - Funding Information:
The author is grateful to the editors and the anonymous reviewer for their comments and advice. She owes a debt of gratitude to Andrés Perea for his thorough reading of the early versions of this paper and his numerous valuable comments and suggestions. She is grateful to Christian Bach, János Flesch, Dmitriy Kvasov, Zsombor Z. Méder, Abraham Neyman, Funaki Yukihiko for their valuable discussions and encouragements. She thanks all teachers and students in the 4th Epicenter Spring Course on Epistemic Game Theory in Maastricht University for their inspiring teaching and stimulating discussions. She gratefully acknowledge the support of Grant-in-Aids for Young Scientists (B) of JSPS No. 17K13707, Grants for Special Research Project No. 2017K-016, and No. 2020C-018 of Waseda University.
Publisher Copyright:
© 2020, Springer-Verlag GmbH Germany, part of Springer Nature.
PY - 2021/3
Y1 - 2021/3
N2 - We characterize three interrelated solution concepts in epistemic game theory: permissibility, proper rationalizability, and iterated admissibility. We define the lexicographic epistemic model in a framework with incomplete information. Based on it, we give two groups of conditions; one characterizes permissibility and proper rationalizability, the other characterizes permissibility in an alternative way and iterated admissibility. In each group, the conditions for the latter are stronger than those for the former, which corresponds to the fact that proper rationalizability and iterated admissibility are incomparable but compatible refinements of permissibility within the complete information framework. The essential difference between the two groups is whether a full belief of rationality is needed.
AB - We characterize three interrelated solution concepts in epistemic game theory: permissibility, proper rationalizability, and iterated admissibility. We define the lexicographic epistemic model in a framework with incomplete information. Based on it, we give two groups of conditions; one characterizes permissibility and proper rationalizability, the other characterizes permissibility in an alternative way and iterated admissibility. In each group, the conditions for the latter are stronger than those for the former, which corresponds to the fact that proper rationalizability and iterated admissibility are incomparable but compatible refinements of permissibility within the complete information framework. The essential difference between the two groups is whether a full belief of rationality is needed.
KW - Epistemic game theory
KW - Incomplete information
KW - Iterated admissibility
KW - Lexicographic belief
KW - Permissibility
KW - Proper rationalizability
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U2 - 10.1007/s00182-020-00742-0
DO - 10.1007/s00182-020-00742-0
M3 - Article
AN - SCOPUS:85093846630
SN - 0020-7276
VL - 50
SP - 119
EP - 148
JO - International Journal of Game Theory
JF - International Journal of Game Theory
IS - 1
ER -