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- noun The condition of being
from Wiktionary, Creative Commons Attribution/Share-Alike License
These common knowledge assumptions are the motivational basis for the solution concept for noncooperative games known as rationalizability, introduced independently by Bernheim (1984) and Pearce (1984).
To show that rationalizability is a nontrivial notion, consider the
However, the endogenous correlated equilibrium concept is a proper refinement of rationalizability, because the latter does not presuppose that condition (3. iii) holds with respect to the beliefs one's opponents actually have.
However, rationalizability becomes an unstable solution concept if the agents come to know more about one another.
Hence, the endogenous correlated equilibrium Î¼* restricts the set of strategies that the agents might follow, as do the Bayes concordant beliefs of rationalizability.