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Approximate Knowledge of Rationality and Correlated Equilibria
Germano, Fabrizio; Zuazo-Garin, Peio - Barcelona Graduate School of Economics (Barcelona GSE) - 2012
We extend Aumann's theorem [Aumann 1987], deriving correlated equilibria as a consequence of common priors and common knowledge of rationality, by explicitly allowing for non-rational behavior. We replace the assumption of common knowledge of rationality with a substantially weaker one, joint...
Persistent link: https://www.econbiz.de/10010851330
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Price of Anarchy in Sequencing Situations and the Impossibility to Coordinate
Hamers, Herbert; Klijn, Flip; Slikker, Marco - Barcelona Graduate School of Economics (Barcelona GSE) - 2013
Scheduling jobs of decentralized decision makers that are in competition will usually lead to cost inefficiencies. This cost inefficiency is studied using the Price of Anarchy (PoA), i.e., the ratio between the worst Nash equilibrium cost and the cost attained at the centralized optimum. First,...
Persistent link: https://www.econbiz.de/10010851455
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Bayesian Nash Equilibrium in "Linear" Cournot Models with Private Information about Costs
Hurkens, Sjaak - Barcelona Graduate School of Economics (Barcelona GSE) - 2012
Calculating explicit closed form solutions of Cournot models where firms have private information about their costs is, in general, very cumbersome. Most authors consider therefore linear demands and constant marginal costs. However, within this framework, the nonnegativity constraint on prices...
Persistent link: https://www.econbiz.de/10010851464
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Endogenous Private Information Structures
Hurkens, Sjaak; Vulkan, Nir - Barcelona Graduate School of Economics (Barcelona GSE) - 2003
We formally incorporate the option to gather information into a game and thus endogenize the information structure. We ask whether models with exogenous information structures are robust with respect to this endogenization. Any Nash equilibrium of the game with information acquisition induces a...
Persistent link: https://www.econbiz.de/10010547453
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Bounded Rationality and Correlated Equilibria
Germano, Fabrizio; Zuazo-Garin, Peio - Barcelona Graduate School of Economics (Barcelona GSE) - 2015
We study an interactive framework that explicitly allows for non-rational behavior. We do not place any restrictions on how players can deviate from rational behavior. Instead we assume that there exists a lower bound p 2 [0; 1] such that all players play and are believed to play rationally with...
Persistent link: https://www.econbiz.de/10011188510
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Uncertain Rationality and Robustness in Games with Incomplete Information
Germano, Fabrizio; Zuazo-Garin, Peio - Barcelona Graduate School of Economics (Barcelona GSE) - 2015
Economic predictions are highly sensitive to model and informational specifications. Weinstein and Yildiz (2007) show that, in static games with incomplete information, only very weak predictions, namely, the interim correlated rationalizable (ICR) actions, are robust to higher-order belief...
Persistent link: https://www.econbiz.de/10011196334
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Stable Sunspot Equilibria in a Cash-in-Advance Economy
Evans, George W.; Honkapohja, Seppo; Marimon, Ramon - Barcelona Graduate School of Economics (Barcelona GSE) - 2003
We analyze a monetary model with flexible labor supply, cash-inadvance constraints and seigniorage-financed government deficits. If the intertemporal elasticity of substitution of labor is greater than one, there are two steady states, one determinate and the other indeterminate. If the...
Persistent link: https://www.econbiz.de/10010851434
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Stock Price Booms and Expected Capital Gains
Adam, Klaus; Marcet, Albert; Beutel, Johannes - Barcelona Graduate School of Economics (Barcelona GSE) - 2015
The booms and busts in U.S. stock prices over the post-war period can to a large extent be explained by fluctuations in investors' subjective capital gains expectations. Survey measures of these expectations display excessive optimism at market peaks and excessive pessimism at market troughs....
Persistent link: https://www.econbiz.de/10011194310
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Offshoring and Directed Technical Change
Acemoglu, Daron; Gancia, Gino; Zilibotti, Fabrizio - Barcelona Graduate School of Economics (Barcelona GSE) - 2014
We study the short- and long-run implications of offshoring on innovation, technology adoption, wage and income …
Persistent link: https://www.econbiz.de/10010950605
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Input Diffusion and the Evolution of Production Networks
Carvalho, Vasco; Voigtländer, Nico - Barcelona Graduate School of Economics (Barcelona GSE) - 2015
The adoption and diffusion of inputs in the production network is at the heart of technological progress. What … increases the likelihood of adoption throughout the subsequent four decades. A one-standard deviation decrease in network … distance is associated with an increase in the adoption probability by one third to one half. Similarly, U.S. firms are …
Persistent link: https://www.econbiz.de/10011266629