Deliberation about what to do in any context requires reasoning about what will or would happen in various alternative situations, including situations that the agent knows will never in fact be realized. In contexts that involve two or more agents who have to take account of each others' deliberation, the counterfactual reasoning may become quite complex. When I deliberate, I have to consider not only what the causal effects would be of alternative choices that I might make, but also what (...) other agents might believe about the potential effects of my choices, and how their alternative possible actions might affect my beliefs. Counterfactual possibilities are implicit in the models that game theorists and decision theorists have developed – in the alternative branches in the trees that model extensive form games and the different cells of the matrices of strategic form representations – but much of the reasoning about those possibilities remains in the informal commentary on and motivation for the models developed. Puzzlement is sometimes expressed by game theorists about the relevance of what happens in a game ‘off the equilibrium path’: of what would happen if what is both true and known by the players to be true were instead false. (shrink)

Reasoning About Knowledge is the first book to provide a general discussion of approaches to reasoning about knowledge and its applications to distributed ...

Multi-modal versions of propositional logics S5 or S4—commonly accepted as logics of knowledge—are capable of describing static states of knowledge but they do not reflect how the knowledge changes after communications among agents. In the present paper (part of broader research on logics of knowledge and communications) we define extensions of the logic S5 which can deal with public communications. The logics have natural semantics. We prove some completeness, decidability and interpretability results and formulate a general method that solves certain (...) kind of problems involving public communications—among them well known puzzles of Muddy Children and Mr. Sum & Mr. Product. As the paper gives a formal logical treatment of the operation of restriction of the universe of a Kripke model, it contributes also to investigations of semantics for modal logics. (shrink)

This paper extends earlier work by its authors on formal aspects of the processes of contracting a theory to eliminate a proposition and revising a theory to introduce a proposition. In the course of the earlier work, Gardenfors developed general postulates of a more or less equational nature for such processes, whilst Alchourron and Makinson studied the particular case of contraction functions that are maximal, in the sense of yielding a maximal subset of the theory (or alternatively, of one of (...) its axiomatic bases), that fails to imply the proposition being eliminated. In the present paper, the authors study a broader class, including contraction functions that may be less than maximal. Specifically, they investigate "partial meet contraction functions", which are defined to yield the intersection of some nonempty family of maximal subsets of the theory that fail to imply the proposition being eliminated. Basic properties of these functions are established: it is shown in particular that they satisfy the Gardenfors postulates, and moreover that they are sufficiently general to provide a representation theorem for those postulates. Some special classes of partial meet contraction functions, notably those that are "relational" and "transitively relational", are studied in detail, and their connections with certain "supplementary postulates" of Gardenfors investigated, with a further representation theorem established. (shrink)

We show how belief revision can be treated systematically in the format of dynamicepistemic logic, when operators of conditional belief are added. The core engine consists of definable update rules for changing plausibility relations between worlds, which have been proposed independently in the dynamic-epistemic literature on preference change. Our analysis yields two new types of modal result. First, we obtain complete logics for concrete mechanisms of belief revision, based on compositional reduction axioms. Next, we show how various abstract postulates for (...) belief revision can be analyzed by standard modal frame correspondences for model-changing operations. (shrink)

For the past 20 years or so the literature on noncooperative games has been centered on the search for an equilibrium concept that expresses the notion of rational behavior in interactive situations. A basic tenet in this literature is that if a “rational solution” exists, it must be a Nash equilibrium. The consensus view, however, is that not all Nash equilibria can be accepted as rational solutions. Consider, for example, the game of Figure 1.

In this paper we introduce Dynamic Epistemic Logic, which is alogic for reasoning about information change in a multi-agent system. Theinformation structures we use are based on non-well-founded sets, and canbe conceived as bisimulation classes of Kripke models. On these structures,we define a notion of information change that is inspired by UpdateSemantics (Veltman, 1996). We give a sound and complete axiomatization ofthe resulting logic, and we discuss applications to the puzzle of the dirtychildren, and to knowledge programs.

The problem of finding sufficient doxastic conditions for backward induction in games of perfect information is analyzed in a syntactic framework with subjunctive conditionals. This allows to describe the structure of the game by a logical formula and consequently to treat beliefs about this structure in the same way as beliefs about rationality. A backward induction and a non-Nash equilibrium result based on higher level belief in rationality and the structure of the game are derived.

Game theory has proved a useful tool in the study of simple economic models. However, numerous foundational issues remain unresolved. The situation is particularly confusing in respect of the non-cooperative analysis of games with some dynamic structure in which the choice of one move or another during the play of the game may convey valuable information to the other players. Without pausing for breath, it is easy to name at least 10 rival equilibrium notions for which a serious case can (...) be made that here is the “right” solution concept for such games. (shrink)