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Stanislaw Ambroszkiewicz and Jan Komar
811
Abstract
Two representations of agent's knowledge as well
as the way in which rational agent uses its knowledge in
decision making in dynamic case are introduced. The dynamic case raises some
problems, like the famous paradox concerning backward induction
and assumption of the common knowledge of agents' rationality.
Finally an explanation of the paradox and a method, that
allows to use the backward induction consistently, are
presented.
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