12.7.3 Initial CBR
We begin with the simplest set of epistemic assumptions that take into account the extensive-form nature of the game, but are still close to strategic-form analysis in spirit.
Following Ben-Porath (1997), we consider the assumption that players are (sequentially) rational and initially commonly believe in (sequential) rationality:
Except for the fact that rationality is interpreted in the sense of Definition 12.24, these epistemic assumptions are analogous to RCBR in simultaneous-moves games, as defined in Eqs. 12.9 and 12.10. Direct restrictions ...