On the Equivalence between Iterated Application of Choice Rules and Common Belief of Applying these Rules

Abstract

In this paper, we detect meaningful properties of choice rules ensuring that the solution generated by iterated application of choice rules specifies the strategy profiles that might be realized by players who follow these rules and commonly believe this. Our main result is based on four substantial assumptions on choice rules. Whenever the players' choices rules satisfy - besides the technical assumption of regularity - the properties of reflexivity, monotonicity, Aizerman's property, and the independence of payoff equivalent conditions, then such coincidence occurs. This result proves to be strict in the following sense. None of the four substantial properties can be omitted without eliminating the coincidence.

Beteiligte Personen

• Dr. rer. pol. Michael Trost