Norimasa Kobayashi, Yasuo Sasaki
International Journal of Game Theory, 2024 Peer-reviewed
This paper discusses rationalizable self-confirming equilibrium (RSCE) in static games with unawareness that captures steady states of such games. We begin by defining the equilibrium concept in terms of its epistemic conditions. k-RSCE is a situation in which agents make rational choices and have correct beliefs about one another’s choices, and moreover these can be mutual belief to the k-th order. We then present an alternative definition that dispenses with these epistemic conditions and allows us to obtain equilibria through iterative eliminations of certain action profiles. In standard static games, k-RSCE reduces to Nash equilibrium, but not under unawareness. We examine the equilibrium concept’s properties and clarify its relationships with other equilibrium concepts for games with unawareness.