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Aumann's 1995 formalization demonstrates that mutual know... — Carmelics

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Challenges→The paradox of backward induction arises from building literally complete information into the concept of rationality.

Aumann's 1995 formalization demonstrates that mutual knowledge of rationality in extensive-form games suffices to generate backward induction conclusions.

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Key Terms

knowledge(Distinguished from mere true belief, which may be the product of indoctrination and need not exercise deliberative capacities.): Justified true belief — true belief that has been arrived at through the exercise of deliberative capacities, including comparison of and deliberation among alternatives.

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The paradox of backward induction arises from building literally complete inform...

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