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Recent literature has established a link between the fully cursed equilibrium and the analogy-based expectation equilibrium. In this note, even the partially cursed equilibrium is shown to correspond to an analogy-based expectation equilibrium.
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We find that the actual willingness to pay for various consumer goods can be manipulated by an uninformative anchor, replicating Ariely et al. (2003). We furthermore demonstrate that the anchoring effect decreases but does not vanish with higher cognitive ability.
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Within a class of games that we call Blame Games, we discuss how strategic risk may discourage play of a unique and efficient (strictly) dominance solvable equilibrium.
Persistent link: https://www.econbiz.de/10008867031
In a one-shot Prisoners’ dilemma experiment, female participants are highly sensitive to the social frame. Male participants are not.
Persistent link: https://www.econbiz.de/10010688095