WebOct 14, 2024 · For instance, in the game of Figure 1, forward-induction reasoning selects the equilibrium (cf., e.g., Van Damme ). Thus, if Ann follows the logic of forward induction, she should expect Bob to play B. However, suppose action Out is removed. Then the game reduces to the simultaneous-move Battle of the Sexes, in which forward induction has … WebJan 1, 2011 · PDF Interactive epistemology in dynamic games studies forms of strategic reasoning like backward induction and forward induction by formally... Find, read …

Strategies and interactive beliefs in dynamic games

WebMar 1, 2003 · Weak rationalizability is characterized by common certainty of rationality at the beginning of the game. Strong rationalizability also incorporates a notion of forward induction. The solutions may ... WebThe latter is in contrast with forward induction—viz., common strong belief in rationality—that predicts {LA}×{CC}, as well as with backward induction—viz., common belief in future rationality—that yields {LA,LB,RA}×{CC,CD,DC, DD}. The reason for these deviations is that Ann can only use some—but not her grassroots crisis line

Backward induction - Wikipedia

WebIn this paper we show that in many dynamic games of interest, this correct beliefs assumption may be incompatible with a very basic form of forward induction reasoning: the first two layers of extensive-form rationalizability (Pearce, 1984; Battigalli, 1997, epistemically characterized by Battigalli and Siniscalchi, 2002). Hence, forward ... WebDownloadable! Interactive epistemology in dynamic games studies forms of strategic reasoning like backward induction and forward induction by formally representing the players' beliefs about each other, conditional on each history. Work on this topic typically relies on epistemic models where states of the world specify both strategies and beliefs. Webdard three-step procedure in obtaining subgame-perfect equilibria of dynamic games, namely, backward induction, forward induction, and approximation of the infinite hori … chlamydomonas facts