Webcall have a stable outcome, forward induction equilibrium exists for all generic extensive form games5. We also explore the relationship between forward and backward … WebInteractive epistemology in dynamic games studies forms of strategic reasoning like backward induction and forward induction by formally representing the players' beliefs …
Strategies and interactive beliefs in dynamic games
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 … Webequilibria of dynamic games, namely, backward induction, forward induction, and approximation of infinite horizon by finite horizon. Because we drop public randomization and the continuity requirement on the state variables, new technical difficulties arise in each step of the proof. In the step of backward induction, we in an old cottage in french
(PDF) Rationalizability in Infinite, Dynamic Games with Incomplete ...
WebThe forward induction step for measurable dynamic games is then completed by combining the equilibrium strategies obtained on , (subject to slight modifications). The last step (extending the finite-horizon setting to the infinite-horizon setting) follows a logic similar to that explained in Step 3 in Section 4.3 . 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 ... 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 inazuma places genshin