Tutorial on Epistemic Game Theory
This tutorial will be an introduction to Epistemic Game Theory -- a new approach to game theory where the reasoning of people is at center stage. Unlike classical game theory, we are not only interested in the choices that players make, but above all in the
beliefs that motivate these choices. Such beliefs may be beliefs about the opponents' choices, but also beliefs about the opponents' beliefs. By exploring these beliefs directly, we try to obtain a better understanding of why people make certain choices in games.
Every reasoning concept imposes certain restrictions on the beliefs that players may hold about the opponents, which indirectly leads
to restrictions on the choices that players may make in a game. In this tutorial we will discuss several prominent reasoning concepts
in epistemic game theory, both for static and for dynamic games. In fact, every lecture will be dedicated to one reasoning concept. For every reasoning concept we will, among other things, characterize the choices that players may rationally make under this concept, typically by means of a recursive elimination procedure.
To every reasoning concept there will also be an exercise session, at the beginning of the next day, where some exercises will be discussed.
The tutorial will be based on the textbook "Epistemic Game Theory: Reasoning and Choice" by Andrés Perea
Session on 30/6/15, 13h30: Common Belief in Rationality.
Session on 1/7/15, 13h30: Nash Equilibirum.
Session on 2/7/15, 13h30: Backward Induction Reasoning.
Session on 3/7/15, 13h30: Forward Induction Reasoning.