Computing rational decisions in extensive games with limited foresight

Abstract

We introduce a class of extensive form games where players might not be able to foresee the possible consequences of their decisions and form a model of their opponents which they exploit to achieve a more profitable outcome. We improve upon existing models of games with limited foresight, endowing players with the ability of higher-order reasoning and proposing a novel solution concept to address intuitions coming from real game play. We analyse the resulting equilibria, devising an effective procedure to compute them.