A Necessary and Sufficient Epistemic Condition for Playing Backward Induction

Authors: 
Dieter Balkenborg & Eyal Winter
Abstract: 

In an epistemic framework due to Aumann we characterize the minimal condition on the rationality of the players that implies backward induction in perfect information games in agent form. This condition requires each player to know that the players are rational at later, but not at previous decision nodes.

Date: 
June, 1994
Published in: 
Journal of Mathematical Economics 27 (1997), 325-345
Number: 
48