Strategies and Interactive Beliefs in Dynamic Games

This chapter provides a perspective on dynamic interactive epistemology, i.e., the formal analysis of rationality and beliefs (including beliefs about the beliefs of others) in dynamic games. Unlike others chapters in the volumes, this is not done by surveying and commenting the literature, but rather by introducing new ideas and results. The main point of the paper is that a strategy of a player is a collection of conditional predictions about his own choices in the game. As such, a strategy cannot be chosen, only planned. However, the literature treats strategis as iof they could be chosen. This conceptual issue is address by modifying the traditional framework and deriving new characterization results, mainly in the context of games with perfect information. These new results allow a reinterpretation of the results in the literature