2017/07/27 by Burkhard C. Schipper · 1 citation
Computer Science · #cs.GT #cs.MA
paper · pdf · doi:10.4204/eptcs.251.35
published as EPTCS 251, 2017, pp. 470-488 · In Proceedings TARK 2017, arXiv:1707.08250
arxiv created 2017/07/27 · arxiv updated 2017/07/28
Equilibrium notions for games with unawareness in the literature cannot be interpreted as steady-states of a learning process because players may discover novel actions during play. In this sense, many games with unawareness are "self-destroying" as a player's representation of the game must change after playing it once. We define discovery processes where at each state there is an extensive-form game with unawareness that together with the players' play determines the transition to possibly another extensive-form games with unawareness in which players are now aware of actions that they have previously discovered. A discovery process is rationalizable if players play extensive-form rationalizable strategies in each game with unawareness. We show that for any game with unawareness there is a rationalizable discovery process that leads to a self-confirming game that possesses an extensive-form rationalizable self-confirming equilibrium. This notion of equilibrium can be interpreted as steady-state of a learning and discovery process.