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refinements. The starting-point is the rationalistic approach to games and the question whether there exists a convincing, self …-enforcing theory of rational behavior in non-cooperative games. Given the assumption of independent behavior of the players, it follows … a unilateral deviation. Nash equilibria exist and for generic (finite) games there is a finite number of Nash …
Persistent link: https://www.econbiz.de/10014024504
This chapter is a very compressed review of the neoclassical orthodoxy on the nature of rationality on economic theory. It defends the orthodoxy both against the behavioral criticism that it assumes too much and the revisionist view that it assumes too little. In places, especially on the...
Persistent link: https://www.econbiz.de/10014025458
Does monitoring past conduct facilitate intertemporal cooperation? We designed an experiment characterized by strategic uncertainty and multiple equilibria where coordinating on the efficient outcome is a challenge. Participants, interacting anonymously in a group, could pay a cost either to...
Persistent link: https://www.econbiz.de/10011713674
We develop a model of social preferences for network games and study its predictions in a local public goods game with … centralized networks. All predictions are confirmed in an experiment. …
Persistent link: https://www.econbiz.de/10013341638
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themselves to distort their strategic behavior. We characterize pure-strategy symmetric equilibria arising in such games under … equilibrium outputs of the delegated common agency game, although the two games differ in terms of the distribution of surplus …
Persistent link: https://www.econbiz.de/10011400799
A coordination game with incomplete information is played through time. In each period, payoffs depend on a fundamental state and an additional idiosyncratic shock. Fundamentals evolve according to a random walk where the changes in fundamentals (namely common shocks) have a fat tailed...
Persistent link: https://www.econbiz.de/10011573294
environments by relying on techniques developed elsewhere for aggregate games and for the mechanism design delegation literature …
Persistent link: https://www.econbiz.de/10011937306