rationalizability
Rationalizability is a solution concept in game theory that identifies the strategies players can choose rationally when they hold beliefs about others’ behavior and these beliefs are common knowledge of rationality. It was introduced independently by Bernheim and by Pearce in the 1980s.
A strategy is rationalizable if it can be a best response to some belief about the other
Epistemically, rationalizability corresponds to the idea that players are rational and that this rationality is common
Relation to other concepts: rationalizability generalizes the idea behind iterated elimination of strictly dominated strategies but
In sum, rationalizability captures what players can justifiably do under mutual rationality and common knowledge, focusing