Recommended Citation
Postprint version. Published in Games and Economic Behavior, Volume 63, Issue 1, May 1, 2008, pages 395-405.
The definitive version is available at https://doi.org/10.1016/j.geb.2007.06.010.
Abstract
In this paper I present conditions, not involving common knowledge of rationality, that lead to (correlated) rationalizability. The basic observation is that, if the actual world belongs to a set of states where the set Z of action profiles is played, everyone is rational and it is mutual knowledge that the action profiles played are in Z, then the actions played at the actual world are rationalizable actions. Alternatively, if at the actual world the support of the conjecture of player i is Di, there is mutual knowledge of: (i) the game being played, (ii) that the players are rational, and (iii) that for every i the support of the conjecture of player i is contained in Di, then every strategy in the support of the conjectures is rationalizable. The results do not require common knowledge of anything and are valid for games with any number of players.
Disciplines
Economics
Copyright
2007 Elsevier Inc.
URL: https://digitalcommons.calpoly.edu/econ_fac/33