Self-confirming Games: Unawareness, Discovery, and Equilibrium

Understand

Equilibrium notions for games with unawareness in the literature cannot be interpreted as steady-states of a learning process because players may discover novel actions during play.

• In this sense, many games with unawareness are "self-destroying" as a player's representation of the game must change after playing it once.
• We define discovery processes where at each state there is an extensive-form game with unawareness that together with the players' play determines the transition to possibly another extensive-form games with unawareness in which players are now aware of actions that they have previously discovered.
• A discovery process is rationalizable if players play extensive-form rationalizable strategies in each game with unawareness.