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Backward induction and common knowledge of rationality

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  • Aumann, Robert J.

Abstract

We formulate precisely and prove the proposition that if common knowledge of rationality obtains in a game of perfect information, then the backward induction outcome is reached. Journal of Economic Literatur Classification Numbers: C72 D81.

Suggested Citation

  • Aumann, Robert J., 1995. "Backward induction and common knowledge of rationality," Games and Economic Behavior, Elsevier, vol. 8(1), pages 6-19.
    • Handle: RePEc:eee:gamebe:v:8:y:1995:i:1:p:6-19
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    References listed on IDEAS

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    1. Robert Aumann & Adam Brandenburger, 2014. "Epistemic Conditions for Nash Equilibrium," World Scientific Book Chapters, in: The Language of Game Theory Putting Epistemics into the Mathematics of Games, chapter 5, pages 113-136, World Scientific Publishing Co. Pte. Ltd..
    2. Bonanno, Giacomo, 1991. "The Logic of Rational Play in Games of Perfect Information," Economics and Philosophy, Cambridge University Press, vol. 7(1), pages 37-65, April.
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    4. Samet, Dov, 1996. "Hypothetical Knowledge and Games with Perfect Information," Games and Economic Behavior, Elsevier, vol. 17(2), pages 230-251, December.
    5. Aumann, Robert J, 1987. "Correlated Equilibrium as an Expression of Bayesian Rationality," Econometrica, Econometric Society, vol. 55(1), pages 1-18, January.
    6. Partha Dasgupta & Douglas Gale & Oliver Hart & Eric Maskin (ed.), 1992. "Economic Analysis of Markets and Games: Essays in Honor of Frank Hahn," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262541599, April.
    7. Philip J. Reny, 1992. "Rationality in Extensive-Form Games," Journal of Economic Perspectives, American Economic Association, vol. 6(4), pages 103-118, Fall.
    8. Basu, Kaushik, 1990. "On the Non-existence of a Rationality Definition for Extensive Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 19(1), pages 33-44.
    9. Ben-Porath, Elchanan, 1992. "Rationality, Nash Equilibrium and Backward Induction in Perfect Information Games," Foerder Institute for Economic Research Working Papers 275567, Tel-Aviv University > Foerder Institute for Economic Research.
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