2. Normal—Form Analysis
2.1 Beliefs and Best Responses
Dual characterizations of Best Responses
Iterating the “best response operator:” rationalizability, iterated weak dominance.
R OR Section 2.1 and Chapter 4
O MY Sections 1.8 and 3.1;
BERNHEIM, D. (1984): “Rationalizable Strategic Behavior,” Econometrica,
52, 1007-1028.
2.2 Fixed points of the best response operator: Nash equilibrium.
Existence and mixed strategies. Interpretation.