In real-life examples of strategy, you almost never find the kind of too-clever multi-level silliness you see in caper movies. A: Realistic: “He think I’m going to do X” B: Not realistic: “He thinks I think he thinks I’ll do X” It gets indistinguishable from noise very quickly
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apropos of that thread on Hans Witsenhausen (it’s a travesty that Aumann is practically a household name among the students of strategy and conflict, but not Witsenhausen)
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Yeah, Witsenhausen notion of information state is the right lens on this. More levels of recursive analysis does not mean more primitive random information.
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