from Part II - Standard Games
Published online by Cambridge University Press: 17 June 2025
This chapter focuses on standard games. It starts by explaining how a standard game can be viewed as a collection of one-person decision problems. Subsequently, it is shown how belief hierarchies about choices can be visualized by means of a beliefs diagram, and mathematically encoded by means of an epistemic model with types. This is used to provide a formal definition of common belief in rationality – the central line of reasoning which states that a player believes that others choose rationally, believes that others believe that others choose rationally, and so on. It is shown that the choices which are possible under common belief in rationality can be characterized by the iterated elimination of strictly dominated choices.
To save this book to your Kindle, first ensure no-reply@cambridge-org.demo.remotlog.com is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.
Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.
Find out more about the Kindle Personal Document Service.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.
To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.