What Happened To The Three-Legged Centipede Game?
Author InfoGraciela Kuechle Abstract In the last two decades, several frameworks have been proposed to analyze the question of whether common knowledge of rationality is sufficient to justify the play of backward induction (BI) in games of perfect information. Three strands of literature have addressed this issue: the literature on equilibrium refinements, the literature on knowledge-based epistemology and the literature on interactive epistemology. This paper surveys seminal frameworks within the first two strands of research and assesses the extent to which they provide a satisfactory solution to the problem.
