Graduation Year
2019
Date of Submission
4-2019
Document Type
Open Access Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Second Department
Philosophy
Reader 1
Yaron Raviv
Reader 2
Dustin Locke
Terms of Use & License Information
Rights Information
© 2019 Ahmed Bilal
Abstract
The Backward Induction strategy for the Centipede Game leads us to a counterfactual reasoning paradox, The Centipede Game paradox. The counterfactual reasoning proving the backward induction strategy for the game appears to rely on the players in the game not choosing that very same backward induction strategy. The paradox is a general paradox that applies to backward induction reasoning in sequential, perfect information games. Therefore, the paradox is not only problematic for the Centipede Game, but it also affects counterfactual reasoning solutions in games similar to the Centipede Game. The Centipede Game is a prime illustration of this paradox in counterfactual reasoning. As a result, this paper will use a material versus subjunctive/counterfactual conditional analysis to provide a theoretical resolution to the Centipede Game, with the hope that a similar solution can be applied to other areas where this paradox may appear. The solution involves delineating between the epistemic systems of the players and the game theorists.
Recommended Citation
Bilal, Ahmed, "Counterfactual conditional analysis using the Centipede Game" (2019). CMC Senior Theses. 2252.
https://scholarship.claremont.edu/cmc_theses/2252
Included in
Behavioral Economics Commons, Economic Theory Commons, Epistemology Commons, Logic and Foundations of Mathematics Commons
