Epistemic Game Theory: Reasoning and Choice

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Each chapter is dedicated to one particular, natural way of reasoning. The book then shows how each of these ways of reasoning will affect the final choices that can rationally be made and how these choices can be found by iterative procedures. Moreover, it does so in a way that uses elementary mathematics and does not presuppose any previous knowledge of game theory. Common belief in rationality. Simple belief hierarchies. Practical problems. Lexicographic beliefs in static games. Respecting the opponents preferences. Assuming the opponents rationality. If you have any comments on the book, please send me an E-mail at: a.

Chapter 1: Introduction. Utility functions 2. More than two players 2. Choosing rationally 2. Strictly dominated choices. Graphical method 2. Algorithm 2. Practical problems. Theoretical problems.

Chapter 3: Common Belief in Rationality. Belief hierarchies 3. Epistemic model 3.

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Common belief in rationality 3. Graphical method. Existence 3. Algorithm 3. Order independence 3.

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Epistemic Game Theory: Reasoning and Choice

Chapter 4: Simple Belief Hierarchies. Simple belief hierarchies 4.

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Nash equilibrium 4. Computational method 4. Belief that opponents hold correct beliefs 4. Cautious reasoning about the opponent 5. Lexicographic beliefs 5. Belief hierarchies and types 5. Cautious types 5. Weakly dominated choices 5. Existence 6.

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Why elimination of choices does not work 6. Preference restrictions and likelihood orderings 6. Algorithm 6. Order independence 6.

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Common assumption of rationality 7. Algorithm 7. Order dependence 7.

Belief revision 8. Dynamic games 8. Conditional beliefs 8.

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Epistemic model 8. Common belief in future rationality 8.

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