Towards a Characterization of Rational Expectations

Authors: 
Itai Arieli
Abstract: 

R. J. Aumann and J. H. Dr├Ęze (2008) define a rational expectation of a player i in a game G as the expected payo of some type of i in some belief system for G in which common knowledge of rationalityand common priors obtain. Our goal is to characterize the set of rational expectations in terms of the game's payoff matrix. We provide such a characterization for a specific class of strategic games, calledsemi-elementary, which includes Myerson's "elementary" games.

Date: 
February, 2008
Published in: 
Number: 
475