TY - JOUR
T1 - Rationality and coherent theories of strategic behavior
AU - Gul, Faruk
N1 - Funding Information:
* This paper relies heavily on the work of Douglas Bernheim, David Pearce and Phil Reny. I have also benefited from discussions with Dilip Abreu, Douglas Bernheim, Ken Binmore, Eddie Dekel Tabak, David Kreps, David Pearce, Andrew Postlewaite, Phil Reny, Hugo Sonnenschein and Robert Wilson on Nash equilibrium and subgame perfection. Geir Asheim, Chris Avery, Outi Lantto and Sonia Weyers have also provided many valuable comments and criticisms. Financial support from the Alfred P. Sloan Foundation and the National Science Foundation is gratefully acknowledged.
PY - 1996/7
Y1 - 1996/7
N2 - A non-equilibrium model of rational strategic behavior that can be viewed as a refinement of (normal form) rationalizability is developed for both normal form and extensive form games. This solution concept is called a τ-theory and is used to analyze the main concerns of the Nash equilibrium refinements literature such as dominance, iterative dominance, extensive form rationality, invariance, and backward induction. The relationship between τ-theories and dynamic learning is investigated. Journal of Economic Literature Classification Number: C72.
AB - A non-equilibrium model of rational strategic behavior that can be viewed as a refinement of (normal form) rationalizability is developed for both normal form and extensive form games. This solution concept is called a τ-theory and is used to analyze the main concerns of the Nash equilibrium refinements literature such as dominance, iterative dominance, extensive form rationality, invariance, and backward induction. The relationship between τ-theories and dynamic learning is investigated. Journal of Economic Literature Classification Number: C72.
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U2 - 10.1006/jeth.1996.0073
DO - 10.1006/jeth.1996.0073
M3 - Article
AN - SCOPUS:0030191545
SN - 0022-0531
VL - 70
SP - 1
EP - 31
JO - Journal of Economic Theory
JF - Journal of Economic Theory
IS - 1
ER -