"Algorithmic Characterization of Rationalizability in Extensive Form Games"

Working paper, Dept. of Economics, Oxford (revised October 2002)

Abstract: We construct a dynamic epistemic model for extensive form games, which generates a hierarchy of beliefs for each player over her opponents' strategies and beliefs, and tells us how those beliefs will be revised as the game proceeds. We use the model to analyze the implications of the assumption that the players possess common (true) belief in rationality, thus extending the concept of rationalizability to extensive form games.