(Please note: the copyright of these publications belongs to the publisher; the files made available for download on this web page contain the first draft or Working Paper version of the paper. These files cannot be copied or posted on the web without permission of the copyright holder.)
Most of the files that can be downloaded are in .pdf format
[1985, 1986, 1987, 1988, 1989, 1990, 1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008, ]
1985
1. Giacomo Bonanno (with
E.C. Zeeman), "Limited knowledge of demand and oligopoly equilibria",
To download this paper in pdf format click here: JET_85.pdf
To download this paper in pdf format click here: EN1986.pdf
To download this paper in pdf format click here: metro_1986.pdf
To download this paper in pdf format click here: en_it_1986.pdf
To download this paper in pdf format click here: RES_87.pdf
Reprinted in: J. Barkley Rosser,
Jr.(Ed.), Complexity in Economics, The International Library of
Critical
Writings in Economics No. 174, Edward Elgar, 2004.
To download this paper in pdf format click here: aep_1987.pdf
To download this paper in pdf format click here: IER_1988.pdf.pdf
To download this paper in pdf format click here: JIE_1988.pdf
To download this paper in pdf format click here: QJE_1988.pdf
To download this paper in pdf format click here: IJIO_1988.pdf
To download this paper in pdf format click here: EJOR_1988.pdf
To download this paper in pdf format click here: TD_1988.pdf
To download this paper in pdf format click here: EN_1989.pdf
To download this paper in pdf format click here: JES_1990.pdf
To download this paper in pdf format click here: EAP_1991.pdf
To download this paper in pdf format click here: IJGT_1992.pdf
To download this paper in pdf format click here: TD_1992.pdf
To download this paper in pdf format click here: EN_1992_aw.pdf
To download this paper in pdf format click here: MSS_1992.pdf
To download this paper in pdf format click here: EN_1992_piv.pdf
To download this paper in pdf format click here: ijgt93.pdf
To download this paper in pdf format click here: EL_1993.pdf
To download this paper in pdf format click here: EN_1993.pdf
To download this paper in pdf format click here: EAP_1994.pdf
To download this paper in pdf format click here: RE_1994.pdf
To download this paper in pdf format click here: EAP_review.pdf
To download this paper in pdf format click here: EN_1995_SE.pdf
31. Giacomo Bonanno, "Modeling production with Petri Nets", Economic Notes, 1995, 25 (2), pp. 263-292.
Abstract
The purpose of this paper is to bring to the attention of economists a tool of analysis, known as Petri nets, which was developed in the computer science literature. Although, from a purely formal point of view, Petri nets are not a new tool, they do seem to provide a new perspective on models of production. First of all, the graph-theoretic representation of Petri nets makes it possible to see things that would be hard to detect from a purely algebraic formulation of the same problem. Secondly, the formal definition of a Petri net allows one to introduce a wedge between the notions of input and output (to a production process) and the notion of commodity. Among the inputs to (and outputs of) a production process one can include states of nature, logical conditions, etc. This enables us to show that one of the assumptions which is usually considered to be inherent to linear models of production, namely the absence of external economies and diseconomies among processes, can be dispensed with. We also show that Petri nets do not require another assumption normally associated with activity analysis, namely that of constant returns to scale. Finally, Petri nets allow a simple analysis of the problem of what commodity vectors can be obtained from a given vector of initial resources.
To download this paper in pdf formatclick here: EN_1995_PN.pdf
32. Giacomo Bonanno, "On the logic of common belief", Mathematical Logic Quarterly, 1996, 42, 305-311.
Abstract
We provide an axiomatization of the notion of common belief (knowledge) that makes use of no rules of inference (apart from Modus Ponens and Necessitation) and highlight the property of the set of accessibility relations that characterizes each axiom.
To download this paper in pdf format
click here: MLQ_1996.pdf
33. Giacomo Bonanno (with P. Battigalli), "The
logic of belief persistence", Economics and Philosophy,
13, 39-59,
1997.
To download this paper in pdf format
click here: EAP_1997.pdf
34. Giacomo Bonanno (with P. Battigalli), "Synchronic
information, knowledge and common knowledge
in extensive
games", in M. Bacharach, L.A. Gérard-Varet, P. Mongin and H. Shin
(Eds.),
Epistemic
logic and the theory of games and decisions, Kluwer Academic, 1997,
pp. 235-263.
Reprinted in: Research in Economics, 53 (1), March 1999, pp.77-99.
Abstract
Restricting attention to the class of extensive games defined by von Neumann and Morgenstern with the added assumption of perfect recall, we specify the information of each player at each node of the game-tree in a way which is coherent with the original information structure of the extensive form. We show that this approach provides a framework for a formal and rigorous treatment of questions of knowledge and common knowledge at every node of the tree. We construct a particular information partition for each player and show that it captures the notion of maximum information in the sense that it is the finest within the class of information partitions that satisfy four natural properties. Using this notion of “maximum information” we are able to provide an alternative characterization of the meet of the information partitions.
To download
this paper in pdf format click here: extensive.pdf
Download the Journal version from the publisher's
web site: http://www.idealibrary.com/links/doi/10.1006/reec.1998.0183/pdf
35. Giacomo Bonanno , “A note on the subtleties of Bayesian inference”, Economic Notes, 1997, 26 (3), 477-486.
Abstract
Bayesian theory asserts that the beliefs formed by a rational individual in response to new information must be derived from the original beliefs by conditioning on the information. Information is represented by a set of possible states. A state, in turn, ought to represent a complete description of the world. Once the states have been described accurately, application of Bayes’ rule is a non-problematic and mechanical procedure. However, if the states have not been described fully and correctly, then inference based on Bayes’ rule will typically be incorrect. We illustrate this with the help of a case discussed by Nalebuff.
To download
this paper in pdf format click here: EN_1997.pdf
36. Giacomo Bonanno (with K. Nehring), "On
the logic and role of negative introspection of common belief",
Mathematical
Social Sciences, 35, 1998, 17-36.
Abstract
To download
this paper in pdf format click here: neg_int.pdf
37. Giacomo Bonanno (with B. Haworth), "Intensity
of competition and the choice between product
and process
innovation", International Journal of Industrial Organization, 16(4),
495-510, 1998.
Abstract
Two questions are examined within a model of vertical differentiation. The first is whether cost-reducing innovations are more likely to be observed in regimes of more intense (Bertrand) or less intense (Cournot) competition. We find that there are cost-reducing innovations that are pursued under Cournot but not under Bertrand competition. The second is whether the regime of competition affects a firm’s choice between product and process innovation. We show that for the high quality firm, whenever there is a difference between the choice made by a Bertrand competitor and the choice made by a Cournot competitor, the former opts for product innovation, while the latter prefers process innovation. For the low-quality firm the result is reversed.
To download this paper
in pdf format click here: Innovate.pdf
38. Giacomo Bonanno (with K. Nehring), "Assessing
the Truth Axiom under incomplete information",
Mathematical
Social Sciences, 36, 1998, 3-29.
Abstract
To download this paper
in pdf format click here: truth.pdf
39. Giacomo Bonanno (with K. Nehring), “Understanding
Common Priors under Incomplete Information”,
in: Itzhak
Gilboa (ed.), Theoretical aspects of rationality and knowledge (TARK
1998), Morgan Kaufman,
San Francisco,
1998, pp.147-160.
To download
this paper in pdf format click here: TARK
98.pdf
40. Giacomo Bonanno (with K. Nehring), “On
Stalnaker's notion of strong rationalizability and Nash
equilibrium
in perfect information games”, Theory and Decision, 1998, 45, pp.
291-295.
Abstract
Counterexamples to two results by Stalnaker (Theory and Decision, 1994) are given and a corrected version of one of the two results is proved. Stalnaker’s proposed results are: (1) if at the true state of an epistemic model of a perfect information game there is common belief in the rationality of every player and common belief that no player has false beliefs (he calls this joint condition “strong rationalizability”), then the true (or actual) strategy profile is path equivalent to a Nash equilibrium; (2) in a normal-form game a strategy profile is strongly rationalizable if and only if it belongs to the set of profiles that survive the iterative deletion of inferior profiles.
To download
this paper in pdf format click here: Staln.pdf
41. Giacomo Bonanno (with P. Battigalli), "Synchronic
information, knowledge and common knowledge
in extensive
games", Research in Economics, 53 (1), March 1999, pp.77-99.
Abstract
Restricting attention to the class of extensive games defined by von Neumann and Morgenstern with the added assumption of perfect recall, we specify the information of each player at each node of the game-tree in a way which is coherent with the original information structure of the extensive form. We show that this approach provides a framework for a formal and rigorous treatment of questions of knowledge and common knowledge at every node of the tree. We construct a particular information partition for each player and show that it captures the notion of maximum information in the sense that it is the finest within the class of information partitions that satisfy four natural properties. Using this notion of “maximum information” we are able to provide an alternative characterization of the meet of the information partitions.
To download
this paper in pdf format click here: extensive.pdf
Link to the
journal article: published
article
42. Giacomo Bonanno (with K. Nehring), ““Varieties
of interpersonal compatibility of beliefs” in: Jelle Gerbrandy,
Maarten Marx,
Maarten de Rijke and Yde Venema (Eds.), “Essays dedicated to Johan van
Benthem on the
occasion of
his 50th birthday”, Amsterdam University Press, Vossiuspers series,
Amsterdam, 1999.
Abstract
The logic of common belief does not always reflect the logic of individual beliefs. In particular, the Negative Introspection property fails at the common belief level, that is, it can happen that neither is A commonly believed nor is it common belief that A is not commonly believed. Indeed Negative Introspection of common belief involves restrictions on individual beliefs of an intersubjective nature. We consider a number of interpersonal restrictions on beliefs and study their relationship. We also characterize Negative Introspection of common belief in terms of interpersonal properties of individual beliefs. All the results are proved syntactically.
Abstract
We provide a self-contained, selective overview of the literature on the role of knowledge and beliefs in game theory. We focus on recent results on the epistemic foundations of solution concepts, including correlated equilibrium, rationalizability in dynamic games, forward and backward induction.
[Note: this is a 94-page paper. The pdf file is 1.2MB and might take a while to download. On the other hand, the postscript file is much too large (15MB!) and there is no point making it avaliable for downloading]
Abstract
The Common Prior Assumption (CPA) is central to the economics of information and the foundations of game theory. Recent contributions (Dekel and Gul, 1997, Gul, 1996, Lipman, 1995) have questioned its meaningfulness in situations of incomplete information where there is no ex ante stage and the primitives of the model are the individuals’ belief hierarchies. We address this conceptual issue by providing characterizations of two local versions of the CPA which are in terms of the primitives and, therefore, do not involve a counterfactual and problematic ex ante stage. The characterizations involve three notions: Comprehensive Agreement, no error of beliefs and common belief in no error. Comprehensive Agreement is defined as the absence of “agreement to disagree” about any aspect of beliefs; it is a generalization of Aumann’s (1976) notion of agreement. The entire analysis is carried out locally, that is, with reference to the “true state” (which represents the actual profile of belief hierarchies) and does not rely on the Truth Axiom for individual beliefs. The results are also applied to the problem of generalizing the notion of Bayesian updating to single-person, intertemporal situations without perfect recall and without given information partitions.
45. Giacomo Bonanno (with K. Nehring), “Common
belief with the logic of individual belief ",
Mathematical Logic Quarterly,
46 (1), January
2000, pp.49-52.
The logic of common belief
does not always reflect that of individual beliefs. In particular, even
when the individual belief operators satisfy the KD45 logic, the common
belief operator may fail to satisfy axiom 5 (the negative introspection
axiom). That is, it can happen that neither is A commonly believed
nor is it common belief that
A is not commonly believed. We identify
the intersubjective restrictions on individual beliefs that are incorporated
in axiom 5 for common belief.
46. Giacomo Bonanno (with K. Nehring), “Intersubjective
Consistency of Knowledge and Belief ” in: Martina Faller,
Stefan Kaufmann
and Marc Pauly (Eds.): Formalizing the Dynamics of Information,
CSLI Publications,
Stanford (CSLI
Lecture Notes 91), 2000, pp. 27-50.
Abstract.
We consider interactive epistemic
models where individuals are described by both their “knowledge” and their
“beliefs”. Three intersubjective consistency conditions are examined: Intersubjective
Caution (if an individual believes something to be common belief then he
knows it to be common belief), Truth of Common Belief (only true facts
are commonly believed) and Qualitative Agreement. These conditions are
employed in characterizations of the following properties which describe
either the extent of intersubjective truth and/or the logic of common
belief: common belief in no error, common knowledge of common belief, negative
introspection of common belief, coincidence of common knowledge and common
belief, and collapse of individual belief and knowledge. We also discuss
to what extent the the three fundamental conditions can be viewed
as intersubjective rationality conditions.
47. Giacomo Bonanno, “Prediction in branching time logic”, Mathematical Logic Quarterly, 47 (2), May 2001, pp. 239-247.
Abstract.
When we make a non-trivial prediction about the future we select, among the conceivable future descriptions of the world, those that appear to us to be most plausible. Within a branching-time framework we capture this by means of two binary relations, <c and <p. If t1 and t2 are two different times, we interpret t1 <c t2 as saying that t2 is in the conceivable future of t1, while t1 <p t2 is interpreted to mean that t2 is in the predicted future of t1. We propose the following notion of "consistency of predictions''. Suppose that at t1 some future instant t2 is predicted to occur, then (a) every time instant t on the unique path from t1 to t2 should also be predicted at t1 and (b) the prediction of t2 should continue to hold at every such t. We provide a modal system of temporal logic which gives a sound and complete axiomatization of this notion of consistency.
48. Giacomo Bonanno, “Revising predictions ”, in: Johan van Benthem (ed.), Theoretical aspects of rationality and knowledgeTo download the paper in pdf format click here: revpred.pdf
(TARK 2001), Morgan Kaufman, San Francisco, 2001, pp. 273-286.Abstract.
Making a prediction is essentially expressing a belief about the future. It is therefore natural to interpret later predictions as revisions of earlier predictions and to investigate the notion of belief revision in this context. We study, both semantically and syntactically, the following principle of minimum revision of prediction: "as long as there are no surprises, that is, as long as what actually occurs had been predicted to occur, then everything which was predicted in the past, if still possible, should continue to be predicted, and no new predictions should be added". We also study and characterize a notion of consistency of prediction as well as further properties that one might want to impose on the notion of prediction.
49. Giacomo Bonanno, “Branching Time Logic, Perfect Information Games and Backward Induction”,
Games and Economic Behavior, 36 (1), July 2001, pp. 57-73.
The logical foundations of game-theoretic solution concepts have so far been developed within the confines of epistemic logic. In this paper we turn to a different branch of modal logic, namely temporal logic, and propose to view the solution of a game as a complete prediction about future play. We extend the branching time framework by adding agents and by defining the notion of prediction. We show that perfect information games are a special case of extended branching time frames and that the backward-induction solution is a prediction. We also provide a characterization of backward induction in terms of the property of internal consistency of prediction.
To
download the paper in pdf format click
here: bi_logic.pdf
If
you prefer to download the paper as a postscript file click here: bi_logic.ps
Link
to the journal article: published
article
2002
50. Giacomo Bonanno, Reply to “Social cost and Groves mechanisms”, Economic Notes, 31, 2002, pp. 173-176.
Abstract.
In my 1992 paper in Economic Notes I argued that the traditional heuristic interpretation of taxes in the pivotal mechanism (in terms of the utility loss imposed by the taxed individual on the rest of society) is not correct, since it takes into account only the effect that the individual has on the decision concerning the project and disregards the effect that the same individual has on the taxes paid by the other members of society. Campbell criticized my observation on the grounds that (1) “[Bonanno’s] analysis cannot be generalized to the case of positive cost because the allocation that [Bonanno] employs to compute social cost is not feasible in that case”, and (2) “[Bonanno’s] definition is not institution free”. In this paper I reply to both charges and defend my original observation.
To download the paper in pdf format click here: Reply.pdf
51. Giacomo Bonanno, “Information, knowledge and belief”, Bulletin of Economic Research, 54, January 2002, pp. 47-67.
Abstract.
We model information as possibilities consistent with signals received from the environment. Knowledge is obtained by reasoning about the signals received as well as those that might have been received but were not. We use the term `knowledge' to refer to those beliefs that are obtained by reasoning about the available information and nothing else. That is, one ought to be able to fully justify what one knows by means of the information that is available to her. We use the term `belief' to refer to those beliefs that are based on information but not necessarily only on information. We investigate the relationship between information, knowledge and belief, as well as the issue of updating knowledge and belief in response to changes in information.
To download the paper in pdf format click here: information.pdf
If you prefer to download the paper as a postscript file click here:information.ps
52. Giacomo Bonanno, “Modal logic and game theory: two alternative approaches”, Risk Decision and Policy, 7,
December 2002, pp. 309-324.Abstract. Two views of game theory are discussed: (1) game theory as a description of the behavior of rational individuals who recognize each other's rationality and reasoning abilities, and (2) game theory as an internally consistent recommendation to individuals on how to act in interactive situations. It is shown that the same mathematical tool, namely modal logic, can be used to explicitly model both views.
To download the paper in pdf format click here: Rimini.pdf
If you prefer to download the paper as a postscript file click here: Rimini.ps
2003
53. Giacomo Bonanno, “A syntactic characterization of perfect recall in extensive games”, Research in Economics,
57 (3), September 2003, pp. 201-217.Abstract. We provide a syntactic characterization of the property of perfect recall in extensive games. The language we use is basic temporal logic with the addition of a knowledge operator for every player.
.To download the paper in pdf format click here: Loft5.pdf
If you prefer to download the paper as a postscript file click here: Loft5.ps
Link to the journal article: http://authors.elsevier.com/sd/article/S1090944303000358
54. Giacomo Bonanno, “Memory of past beliefs and actions”, Studia Logica, 75 (1), October 2003, pp. 7-30.
Abstract.
Two notions of memory are studied both syntactically and semantically: memory of past beliefs and memory of past actions. The analysis is carried
out in a basic temporal logic framework enriched with beliefs and actions.
.To download the paper in pdf format click here: Memory.pdf
If you prefer to download the paper as a postscript file click here: Memory.ps
Link to the journal article: http://ipsapp009.kluweronline.com/IPS/frames/toc.aspx?J=5187&I=51#
2004
55. Giacomo Bonanno, “Memory and perfect recall in extensive games”, Games and Economic Behavior, 47 (2), May 2004, pp. 237-256.
Abstract.
The notion of perfect recall in extensive games was introduced by Kuhn (1953), who interpreted it as "equivalent to the assertion that each player is allowed by the rules of the game to remember everything he knew at previous moves and all of his choices at those moves''. We provide a characterization and axiomatization of perfect recall based on two notions of memory: (1) memory of past knowledge and (2) memory of past actions..
.To download the paper in pdf format click here: PerfRec.pdf
Also available at: http://repositories.cdlib.org/postprints/26
Link to the journal article: http://authors.elsevier.com/sd/article/S0899825603001933
56. Giacomo Bonanno, “A characterization of von Neumann games in terms of memory", Synthese, 139 (2), March 2004, pp. 237-256 (and Knowledge, Rationality and Action, 2004, pp. 117-131).
Abstract.
An information completion of an extensive game is obtained by extending the information partition of every player from the set of her decision nodes to the set of all
nodes. The extended partition satisfies Memory of Past Knowledge (MPK) if at any node a player remembers what she knew at earlier nodes. It is shown that MPK can be satisfied
in a game if and only if the game is von Neumann (vN) and satisfies memory at decision nodes (the restriction of MPK to a player’s own decision nodes). A game is vN if any two
decision nodes that belong to the same information set of a player have the same number of predecessors. By providing an axiom for MPK we also obtain a syntactic characterization
of the said class of vN games..
.To download the paper in pdf format click here: vNM.pdf
Also available at: http://repositories.cdlib.org/postprints/24
Link to the journal article: http://journals.kluweronline.com/article.asp?PIPS=5256223orhttp://dx.doi.org/10.1023/B:SYNT.0000024905.25386.3d
2005
57. Giacomo Bonanno, “A simple modal logic for belief revision”, Synthese, 147 (2), 2005, pp. 193-228 (and Knowledge, Rationality and Action, 2005, pp. 5-40).
Reprinted in van der Hoek, Wiebe, (Ed.), Uncertainty, rationality and agency, Springer, Dordrect, 2006, pp. 139-174.Abstract.
We propose a modal logic based on three operators, representing intial beliefs, information and revised beliefs. Three simple axioms are used to provide a sound and complete
axiomatization of the qualitative part of Bayes' rule. Some theorems of this logic are derived concerning the interaction between current beliefs and future beliefs. Information flows
and iterated revision are also discussed.
.To download the paper in pdf format click here: BelRev.pdf
Link to the journal article: http://dx.doi.org/10.1007/s11229-005-1348-8
2006
58. Giacomo Bonanno, “Belief revision in a temporal framework: extended abstract”, Proceedings of the 7th conference on Logic and the Foundations of Game and Decision Theory, University of Liverpool, 2006, pp. 43-50.Abstract. The theory of belief revision deals with (rational) changes in beliefs in response to new information. In the literature a distinction has been drawn between belief revision and belief update. The former deals with situations where the objective facts describing the world do not change (so that only the beliefs of the agent change over time), while the letter allows for situations where both the facts and the doxastic state of the agent change over time. We focus on belief revision and propose a temporal framework that allows for iterated revision. We model the notion of "minimal" or "conservative" belief revision by considering logics of increasing strength. We move from one logic to the next by adding one or more axioms and show that the corresponding logic captures more stringent notions of minimal belief revision.
To download the paper in pdf format click here: LOFT7.pdf
2007
59. Giacomo Bonanno, “Axiomatic characterization of the AGM theory of belief revision in a temporal logic”, Artificial Intelligence, 171 (2-3), February 2007, pp. 144–160.Abstract.
Since belief revision deals with the interaction of belief and information over time, branching-time temporal logic seems a natural setting for a theory of belief change. We propose two extensions of a modal logic that, besides the next-time temporal operator, contains a belief operator and an information operator. The first logic is shown to provide an axiomatic characterization of the first six postulates of the AGM theory of belief revision, while the second, stronger,l ogic provides an axiomatic characterization of the full set of AGM postulates.
To download the paper in pdf format click here: AGM.pdf
Link to the journal article: here
60. Giacomo Bonanno, "Temporal interaction of information and belief", Studia Logica, 86, 2007, pp. 381-407.We consider strategic-form games with ordinal payoffs and provide a syntactic analysis of common belief/knowledge of rationality, which we define axiomatically. Two axioms are considered. The first says that a player is irrational if she chooses a particular strategy while believing that another strategy is better. We show that common belief of this weak notion of rationality characterizes the iterated deletion of pure strategies that are strictly dominated by pure strategies. The second axiom says that a player is irrational if she chooses a particular strategy while believing that a different strategy is at least as good and she considers it possible that this alternative strategy is actually better than the chosen one. We show that common knowledge of this stronger notion of rationality characterizes the restriction to pure strategies of the iterated deletion procedure introduced by Stalnaker (1994). Frame characterization results are also provided. Abstract.
To download the paper in pdf format click here: InfBel.pdf
2008
61. Giacomo Bonanno, "A syntactic approach to rationality in games with ordinal payoffs", in: G. Bonanno, W. van der Hoek and M. Wooldridge (eds.), Logic and the Foundations of Game and Decision Theory, Texts in Logic and Games Series, Amsterdam University Press, 2008.We consider strategic-form games with ordinal payoffs and provide a syntactic analysis of common belief/knowledge of rationality, which we define axiomatically. Two axioms are considered. The first says that a player is irrational if she chooses a particular strategy while believing that another strategy is better. We show that common belief of this weak notion of rationality characterizes the iterated deletion of pure strategies that are strictly dominated by pure strategies. The second axiom says that a player is irrational if she chooses a particular strategy while believing that a different strategy is at least as good and she considers it possible that this alternative strategy is actually better than the chosen one. We show that common knowledge of this stronger notion of rationality characterizes the restriction to pure strategies of the iterated deletion procedure introduced by Stalnaker (1994). Frame characterization results are also provided. Abstract.
To download the paper in pdf format click here: CBR.pdf