Possibility and permissibility

We formulate the permissibility concept (Brandenburger, 1992) in terms of general preference, and prove that the solution concept characterizes rationality, caution, and common “belief” of rationality and caution.

► We formulate permissibility (Brandenburger, 1992) in terms of general preference. ► The solution concept employs Lo’s (2005) recipe for generating definitions of possibility. ► The solution concept characterizes (common “belief” of) rationality and caution.