A Plausibility Model for Regret Games

We develop a plausibility model by defining a new notion of rationality based on the assumption that a player believes that she doesn’t play a regret dominated strategy. Especially, we show that the interactive epistemic outcomes of this type of rationality are in line with the solutions of the Iterated Regret Minimization (IRM) algorithm; hence, we provide the epistemic foundation to the IRM algorithm. Indeed, we state that one can achieve a characterization of the IRM algorithm by keeping upgrading the assumption of rationality, and we obtain common belief of rationality in the limit model.