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    Bernheim (1984) and Pearce (1984) show that iterated elim... — Carmelics
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    Challenges→Strong rationality is a more demanding condition than weak rationality.

    Bernheim (1984) and Pearce (1984) show that iterated elimination of dominated strategies depends critically on the order of elimination, producing different solution sets under different orderings.

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    Key Terms

    Bernheim and Pearce(as referenced for their work on game theory)
    Two economists (Douglas Bernheim and David Pearce) who developed important ideas about how rational players should behave in strategic situations.
    Iterated elimination of dominated strategies(as a method for analyzing games)
    A step-by-step process where you remove bad choices (moves that always lose to something else), then repeat the process in the remaining options, over and over until you're left with reasonable choices.
    Order of elimination(as a factor affecting outcomes)
    The sequence in which you remove options; the Aumann-Brandenburger result shows that removing weak options in different orders can lead to different final answers.
    Solution sets(as game theory results)
    The collection of possible final outcomes or strategies that remain after you finish analyzing a game.

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    dominated strategy(Game theory — pure vs. mixed strategy dominance)
    A strategy is dominated when another strategy (or mixture of strategies) yields equal or better expected outcomes in all cases

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    Truth & Knowledge1 linkedModality & Possibility1 linked

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    Strong rationality is a more demanding condition than weak rationality.

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