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from Part IV - Unawareness
Published online by Cambridge University Press: 17 June 2025
This chapter focuses on games with unawareness, where the players may be unaware of some of the choices that others can make. The player’s view specifies the choices in the game that he is aware of. The chapter starts by explaining how a game with unawareness can be viewed as a collection of one-person decision problems. Subsequently, it is shown how belief hierarchies about choices and views can be visualized by means of a beliefs diagram, and mathematically encoded by means of an epistemic model with types. This is used to provide a formal definition of common belief in rationality. It is shown that the choices which are possible under common belief in rationality can be characterized by iterated strict dominance for unawareness. The chapter finally turns to the scenario of fixed beliefs on views, where the players hold some pre-specified beliefs about the opponents’ views.
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