Epistemic Foundations for Backward Induction: An Overview

Abstract

In this survey we analyze, and compare, various sufficient epistemic conditions for backward induction that have been proposed in the literature. To this purpose we present a simple epistemic base model for games with perfect information, and translate the different models into the language of this base model. As such, we formulate the various sufficient conditions for backward induction in a uniform language, which enables us to explictly analyze their differences and similarities.mathematical economics;