Rationality in Extensive-Form Games
AbstractLet us adopt the classical point of view that a theory of games is a description of "rational" behavior. Consequently, equipped with a book entitled "Theory of Games," any individual in any strategic situation need only consult the book to make a "rational" decision. One of the questions to address in this context is indeed whether or not strategies other than those provided by backward induction can ever appear in such a book. In offering an answer, we shall also explore the logical limits within which any "Theory of Games" must operate.
CitationReny, Philip J. 1992. "Rationality in Extensive-Form Games." Journal of Economic Perspectives, 6 (4): 103-118. DOI: 10.1257/jep.6.4.103
- C70 Game Theory and Bargaining Theory: General