Relaxing Completeness

Abstract

In the previous chapter, we have presented epistemic characterizations of rationalizability and permissibility. For these non-equilibrium deductive concepts, we have used, respectively, IESDS and the Dekel-Fudenberg procedure (one round of weak elimination followed by iterated strong domination) as the primitive definitions. Neither of these procedures rely on players having subjective probabilities over the strategy choice of the opponent. In contrast, the epistemic characterizations—by relying on Assumption 1—require that players have complete preferences that are representable by means of subjective probabilities.