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Directed Lexicographic Rationalizability
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Using lexicographic probability systems as representations of players beliefs, we define the solution procedure of directed lexicographic rationalizability. We show that the procedure characterizes the family of self-admissible sets (Brandenburger et al. 2008) in finite games. A corollary of this result is that comprehensive rationalizability (Heifetz et al. 2019) yields a self-admissible set.
Title: Directed Lexicographic Rationalizability
Description:
Using lexicographic probability systems as representations of players beliefs, we define the solution procedure of directed lexicographic rationalizability.
We show that the procedure characterizes the family of self-admissible sets (Brandenburger et al.
2008) in finite games.
A corollary of this result is that comprehensive rationalizability (Heifetz et al.
2019) yields a self-admissible set.
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