Three Essays on Epistemic Game Theory

Abstract

Epistemic game theory provides a formal language to analyze players' strategic choices, rationality, beliefs, etc., which enables us to formally explore the hidden assumptions behind solution concepts in the classical game theory. In this thesis, we mainly focus on epistemic conditions of three game-theoretic solution concepts, namely "mutually acceptable courses of action (MACA)" (Greenberg et al. (2009)), "rationalizable self-confirming equilibrium (RSCE)" (Dekel et al. (1999)), and "backward induction outcome." The notion of "lexicographic probability system (LPS)" (Blume et al. (1991)) and "conditional probability system (CPS)" are used to model players' conjecture in dynamic games.