Rationalizable Partition-Confirmed Equilibrium

Résumé

Rationalizable partition-confirmed equilibrium (RPCE) describes the steady state outcomes of rational learning in extensive games, when rationality is almost common knowledge and players observe a partition of the terminal nodes. RPCE allows players to make inferences about unobserved play by others; we discuss the implications of this using numerous examples. We identify the ways in which the RPCE outcomes depend on terminal node partitions, provide conditions under which they are invariant with respect terminal node partitions, and discuss the relationship of RPCE to other solution concepts in the literature.