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Conditional dominance in games with unawareness

Author

Listed:
  • Martin Meier
  • Burkhard C. Schipper

    (Department of Economics, University of California Davis)

Abstract

Heifetz, Meier and Schipper (2013) introduced generalized extensive-form games that allow for asymmetric unawareness. Here, we study the normal form of a generalized extensive-form game. The generalized normal-form game associated to a generalized extensive-form game with unawareness may consist of a collection of normal-form games. We use it to characterize extensive-form rationalizability (resp. prudent rationalizability) in generalized extensive-form games by iterative conditional strict (resp. weak) dominance in the associated generalized normal-form. We also show that the analogue to iterated admissibility for generalized normal-form games is not independent of the extensive-form structure. This is because under unawareness, a player's information set not only determines which nodes he considers possible but also of which game tree(s) he is aware of.

Suggested Citation

  • Martin Meier & Burkhard C. Schipper, 2022. "Conditional dominance in games with unawareness," Working Papers 351, University of California, Davis, Department of Economics.
    • Handle: RePEc:cda:wpaper:351
    as

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    References listed on IDEAS

    as
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    Cited by:

    1. Burkhard C. Schipper & Hang Zhou, 2022. "Level-k Thinking in the Extensive Form," Working Papers 352, University of California, Davis, Department of Economics.

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    More about this item

    Keywords

    Awareness; unknown unknowns; extensive-form rationalizability; prudent rationalizability; iterated admissibility; iterated conditional dominance;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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