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In the literature of psychology and economics it is frequently observed that individuals tend to conform in their behavior to that of similar individuals. A fundamental question is whether the outcome of such conformity can be consistent with self-interest. We propose that this consistency...
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Is conformity amongst similar individuals consistent with self-interested behavior? We consider a model of incomplete information in which each player receives a signal, interpreted as an allocation to a role, and can make his action choice conditional on his role. Our main result demonstrates...
Persistent link: https://www.econbiz.de/10005459285
Treating games of incomplete information with countable sets of actions and types and finite but large player sets we demonstrate that for every mixed strategy profile there is a pure strategy profile that is 'epsilon-equivalent'. Our framework introduces and exploits a distinction between...
Persistent link: https://www.econbiz.de/10005459287
In a setting where agents must choose between two investments, Zhang (in RAND J Econ 28:188–205, <CitationRef CitationID="CR7">1997</CitationRef>) proposed an equilibrium in which there is strategic delay. This equilibrium relied upon there being an information cascade. We shall demonstrate that an information cascade need not generally...</citationref>
Persistent link: https://www.econbiz.de/10011154650
We contrast and compare three ways of predicting efficiency in a forced contribution threshold public good game. The three alternatives are based on ordinal potential, quantal response and impulse balance theory. We report an experiment designed to test the respective predictions and find that...
Persistent link: https://www.econbiz.de/10011268247
We argue that the intensity of competition within a group or organization can have an important influence on whether or not people cheat. To make this point we first work through a simple model of strategic misreporting in the workplace. For low and high levels of competition we show that, in...
Persistent link: https://www.econbiz.de/10010729435
We argue that a social norm and the coordination of behavior within social groups can be expressed by a correlated equilibrium. Given a social group structure (a partition of individuals into social groups), we propose four conditions that one may expect of a correlated equilibrium consistent...
Persistent link: https://www.econbiz.de/10010891162
Many fundraisers report donations using categories such as more than £ 1000, more than £ 10,000, etc. One naturally wonders how we should categorise donations and whether categorising raises more than simple uncategorised reporting. To answer these questions, we employ a signalling game...
Persistent link: https://www.econbiz.de/10011048218
We argue that a social norm and the coordination of behavior within social groups can be expressed by a correlated equilibrium. Given a social group structure (a partition of individuals into social groups), we propose four conditions that one may expect of a correlated equilibrium consistent...
Persistent link: https://www.econbiz.de/10011035946