The main reason for the formation and functioning of a zombie economy is as follows: the government’s financial support for the zombie economy is mainly in place so as to avoid the bankruptcy of this part of the economy, which can negatively affect economic growth, and, more importantly, the...

We challenge the standard definition of economic rationality as consistency by making use of a novel distinction between axioms of decision theory: consistency and preference axioms. We argue that this distinction has been overlooked by the literature and, as a result, evidence that consistency...

This paper provides a sufficient monotonicity condition for the solution of a rationalizability procedure to not depend on the order of elimination. The analysis unfolds in an abstract environment that applies to any form of finite game and elimination procedure. The result applies to...

To the public, AI has two faces: “Good AI” and “Bad AI”. Concerns about AI range from labor displacement to social manipulation to existential threat. Others see it as key to solving pressing global challenges. Without a better understanding of AI, popular anxiety may lead to policies...

Theoretically, this work relaxes the rationality behind IESDS in the normal-form game and Backward Induction in the extensive-form game, namely common p-believe in rationality in the normal-form game and common p-belief in the opponent’s future rationality in the extensive-form game. Exper-...