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Samet introduced a notion of hypothetical knowledge and showed how it could be used to capture the type of counterfactual reasoning necessary to force the backwards induction solution in a game of perfect information. He argued that while hypothetical knowledge and the extended information...
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Logical characterizations of the common prior assumption (CPA) are investigated. Two approaches are considered. The first is called frame distinguishability, and is similar in spirit to the approaches considered in the economics literature. Results similar to those obtained in the economics...
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Aumann has proved that common knowledge of substantive rationality implies the backwards induction solution in games of perfect information. Stalnaker has proved that it does not. Roughly speaking, a player is substantively rational if, for all vertices "v", if the player were to reach vertex...
Persistent link: https://www.econbiz.de/10014139406
Logical characterizations of the common prior assumption (CPA) are investigated. Two approaches are considered. The first is called frame distinguishability, and is similar in spirit to the approaches considered in the economics literature. Results similar to those obtained in the economics...
Persistent link: https://www.econbiz.de/10014141561