Elias Tsakas

Department of Economics
Maastricht University

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Limited focus in dynamic games
(with Andrés Perea)

In this paper we introduce a novel framework that allows us to model games with players who disregard part of the game tree, thus reasoning about their opponents' rationality at some histories only. Our primary interest is to understand the behavioral implications of the players' failure to focus on some parts of the game tree. Indeed, we characterize the strategy profiles that can be rationally played if players try to rationalize their opponents' moves only at the histories they focus on. We also present several special cases and applications of our framework.