Final answer:
The set of rationalizable actions refers to strategies that can be justified as rational choices in game theory. To find these strategies, we need to examine the best responses of each player given the strategies chosen by others and iteratively eliminate dominated strategies.
Step-by-step explanation:
The set of rationalizable actions refers to the set of strategies that can be justified as rational choices in a game theory context. In game theory, a rationalizable action is one that a player can choose without any knowledge of the strategies chosen by other players, based solely on their own preferences.
To find the set of rationalizable actions, we need to examine the best responses of each player given the strategies chosen by the other players. A strategy is rationalizable if it survives this iterative process of eliminating dominated strategies.
For example, in a simple two-player game with two strategies for each player, if one strategy dominates the other for one player, then the dominated strategy is not rationalizable.