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Related papers: Strategic Behavior under Context Misalignment

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At the beginning of a dynamic game, players may have exogenous theories about how the opponents are going to play. Suppose that these theories are commonly known. Then, players will refine their first-order beliefs, and challenge their own…

Computer Science and Game Theory · Computer Science 2017-07-28 Emiliano Catonini

A traditional assumption in game theory is that players are opaque to one another---if a player changes strategies, then this change in strategies does not affect the choice of other players' strategies. In many situations this is an…

Computer Science and Game Theory · Computer Science 2013-08-20 Joseph Y. Halpern , Rafael Pass

Determining an individual's strategic reasoning capability based solely on choice data is a complex task. This complexity arises because sophisticated players might have non-equilibrium beliefs about others, leading to non-equilibrium…

General Economics · Economics 2026-02-04 Wei James Chen , Meng-Jhang Fong , Po-Hsuan Lin

A traditional assumption in game theory is that players are opaque to one another -- if a player changes strategies, then this change in strategies does not affect the choice of other players' strategies. In many situations this is an…

Computer Science and Game Theory · Computer Science 2013-10-28 Joseph Y. Halpern , Rafael Pass

In experimental applications of bounded-reasoning models, behavior is often summarized by distributions of "levels". We argue that such summaries conflate two conceptually distinct dimensions: a player's type, capturing beliefs about what…

Theoretical Economics · Economics 2026-04-15 Shuige Liu , Gabriel Ziegler

We investigate how distorted, yet structured, beliefs can persist in strategic situations. Specifically, we study two-player games in which each player is endowed with a biased-belief function that represents the discrepancy between a…

Theoretical Economics · Economics 2020-06-30 Yuval Heller , Eyal Winter

Differences in perception, information asymmetries, and bounded rationality lead game-theoretic players to derive a private, subjective view of the game that may diverge from the underlying ground-truth scenario and may be misaligned with…

Artificial Intelligence · Computer Science 2025-12-16 Vince Trencsenyi

Driven by recent successes in two-player, zero-sum game solving and playing, artificial intelligence work on games has increasingly focused on algorithms that produce equilibrium-based strategies. However, this approach has been less…

Computer Science and Game Theory · Computer Science 2022-06-24 Dustin Morrill , Ryan D'Orazio , Reca Sarfati , Marc Lanctot , James R. Wright , Amy Greenwald , Michael Bowling

There is a long history in game theory on the topic of Bayesian or "rational" learning, in which each player maintains beliefs over a set of alternative behaviours, or types, for the other players. This idea has gained increasing interest…

Artificial Intelligence · Computer Science 2016-03-03 Stefano V. Albrecht , Jacob W. Crandall , Subramanian Ramamoorthy

We characterize common assumption of rationality of 2-person games within an incomplete information framework. We use the lexicographic model with incomplete information and show that a belief hierarchy expresses common assumption of…

Econometrics · Economics 2018-01-16 Shuige Liu

Optimizing strategic decisions (a.k.a. computing equilibrium) is key to the success of many non-cooperative multi-agent applications. However, in many real-world situations, we may face the exact opposite of this game-theoretic problem --…

Computer Science and Game Theory · Computer Science 2022-10-05 Jibang Wu , Weiran Shen , Fei Fang , Haifeng Xu

Large Language Models (LLMs) are increasingly applied to domains that require reasoning about other agents' behavior, such as negotiation, policy design, and market simulation, yet existing research has mostly evaluated their adherence to…

Artificial Intelligence · Computer Science 2025-10-14 Enric Junque de Fortuny , Veronica Roberta Cappelli

Classical game-theoretic models typically assume rational agents, complete information, and common knowledge of payoffs - assumptions that are often violated in real-world MAS characterized by uncertainty, misaligned perceptions, and nested…

Artificial Intelligence · Computer Science 2026-02-16 Vince Trencsenyi , Agnieszka Mensfelt , Kostas Stathis

Bayesian rationality in strategic games presumes that it is possible to translate strategic uncertainty into imperfect information. Correlated equilibrium is guided by the idea that players are Bayes rational, have a common prior, and…

Computer Science and Game Theory · Computer Science 2016-02-02 Gabriel Frahm

We extend the indirect evolutionary approach to the selection of (possibly misspecified) models. Agents with different models match in pairs to play a stage game, where models define feasible beliefs about game parameters and about others'…

Theoretical Economics · Economics 2025-09-22 Kevin He , Jonathan Libgober

In the context of strategic games, we provide an axiomatic proof of the statement Common knowledge of rationality implies that the players will choose only strategies that survive the iterated elimination of strictly dominated strategies.…

Computer Science and Game Theory · Computer Science 2010-06-28 Jonathan A. Zvesper , Krzysztof R. Apt

We derive robust predictions in games involving flexible information acquisition, also known as rational inattention (Sims 2003). These predictions remain accurate regardless of the specific methods players employ to gather information.…

Theoretical Economics · Economics 2023-06-19 Tommaso Denti , Doron Ravid

This paper examines games with strategic complements or substitutes and incomplete information, where players are uncertain about the opponents' parameters. We assume that the players' beliefs about the opponent's parameters are selected…

Theoretical Economics · Economics 2025-01-28 Joep van Sloun

We consider systems of rational agents who act and interact in pursuit of their individual and collective objectives. We study and formalise the reasoning of an agent, or of an external observer, about the expected choices of action of the…

Computer Science and Game Theory · Computer Science 2021-02-12 Valentin Goranko , Fengkui Ju

Conventional game theory assumes that players are perfectly rational. In a realistic situation, however, players are rarely perfectly rational. This bounded rationality is one of the main reasons why the predictions of Nash equilibrium in…

Physics and Society · Physics 2026-01-01 Mojtaba Madadi Asl , Mehdi Sadeghi
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