Comprehensive Rationalizability

35 Pages Posted: 3 May 2017

See all articles by Aviad Heifetz

Aviad Heifetz

Open University of Israel - Department of Economics and Management

Martin Meier

Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE)

Burkhard C. Schipper

University of California, Davis - Department of Economics

Date Written: April 17, 2017

Abstract

We present a new solution concept for strategic games called comprehensive rationalizability that embodies "common cautious belief in rationality" based on a sound epistemic characterization in a universal type space. It refines rationalizability, but it neither refines nor is refined by iterated admissibility. Nevertheless, it coincides with iterated admissibility in many relevant economic applications.

Keywords: Common assumption of rationality, common belief in rationality, iterated admissibility, rationalizability, lexicographic belief systems

JEL Classification: C72

Suggested Citation

Heifetz, Aviad and Meier, Martin and Schipper, Burkhard C., Comprehensive Rationalizability (April 17, 2017). Available at SSRN: https://ssrn.com/abstract=2961934 or http://dx.doi.org/10.2139/ssrn.2961934

Aviad Heifetz

Open University of Israel - Department of Economics and Management ( email )

108 Ravutski st.
P.O. B. 808
Raanana, 43107
Israel
+972 9 778 1878 (Phone)
+972 9 778 0668 (Fax)

HOME PAGE: http://www.openu.ac.il/Personal_sites/Aviad-Heifetz.html

Martin Meier

Catholic University of Louvain (UCL) - Center for Operations Research and Econometrics (CORE) ( email )

34 Voie du Roman Pays
B-1348 Louvain-la-Neuve, b-1348
Belgium

Burkhard C. Schipper (Contact Author)

University of California, Davis - Department of Economics ( email )

One Shields Drive
Davis, CA 95616-8578
United States
530-752-6142 (Phone)
530-752-9382 (Fax)

HOME PAGE: http://www.econ.ucdavis.edu/faculty/schipper/

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