Backward Induction and Common Knowledge of Rationality

Authors: 
Robert J. Aumann
Abstract: 

We formulate precisely and prove the proposition that if common knowledge of rationality obtains in a game of perfect information, then the backward induction outcome is reached.

Date: 
December, 1994
Published in: 
Games and Economic Behavior 8 (1995), 6-19
Number: 
59