Business Intelligence

Epistemic Robustness Of Sets Closed Under Rational Behavior

Free registration required

Executive Summary

This paper provides two conditions of epistemic robustness, robustness to alternative best replies and robustness to non-best replies, and uses these to characterize variants of CURB sets in finite games, including the set of rationalizable strategies. A CURB set - mnemonic for 'Closed Under Rational Behavior' - is a Cartesian product of pure-strategy sets, one for each player, that includes all best replies to all probability distributions over the strategies in the set. Hence, if a player believes that her opponents stick to strategies from their components of a CURB set, then her component contains all her best replies, so she'd better stick to her strategies as well.

  • Format: PDF
  • Size: 191.8 KB