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Deductive reasoning in extensive games
DOI:10.1111/1468-0297.00121.png)
Abstract
En 中文
We justify the application to extensive games of a model of deductive reasoning based on three key features: 'caution', 'full belief of opponent rationality', and 'no extraneous restrictions on beliefs'. We apply the model to several examples, and show that it yields novel economic insights. The approach supports forward induction, without necessarily promoting backward induction.
Keywords:
PERFECT-INFORMATION
BACKWARD INDUCTION
RATIONALITY
RATIONALIZABILITY
BEHAVIOR
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