RATIONALITY IN EXTENSIVE-FORM GAMES

Let us adopt the classical point of view that a theory of games is a description of "rational" behavior. Consequently, equipped with a book entitled "Theory of Games," any individual in any strategic situation need only consult the book to make a "rational" decision. One of the questions to address in this context is indeed whether or not strategies other than those provided by backward induction can ever appear in such a book. In offering an answer, we shall also explore the logical limits within which any "Theory of Games" must operate.