Strategic irrationality in extensive games (Q1111953)

The author extends the work of \textit{D. G. Pearce} [Econometrica 52, 1029- 1050 (1984; Zbl 0552.90097)] on rationalizability by defining two new concepts, called sophisticated rationalizable strategies and reasonable strategies, respectively. They are meant to capture the idea that a player may reveal himself irrational in the course of the game by making certain non-rationalizable moves, and that the other players may learn from this. The main results are that (i) sophisticated realizable strategies are realization equivalent to rationalizable strategies; and (ii) that the reasonable solution set is not empty.