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Co-evolution of preferences and information in simple games of trust

Güth, Werner; Kliemt, Hartmut; Peleg, Bezalel - 1998

In standard rational choice modelling decisions are made according to given information and preferences. In the model presented here the 'information technology' of individual decision makers as well as their preferences evolve in a dynamic process. In this process decisions are made rationally...

Persistent link: https://www.econbiz.de/10009578580

Combining rational choice and evolutionary dynamics : the indirect evolutionary approach

Königstein, Manfred; Müller, Wieland - 1999

In this study we propose a formal framework for the indirect evolutionary approach as initiated by Güth and Yaari (1992). It allows to endogenize preferences and to study their evolution. We define two-player indirect evolutionary games with observable types and show how to incorporate...

Persistent link: https://www.econbiz.de/10009580475

On the regulation of social norms

Kübler, Dorothea - 2000

A model is developed to understand how norms can be influenced by "norm entrepreneurs", e.g. lawmakers, government agencies, unions etc. Two instruments of influencing the dynamics of normfollowing behavior are analyzed, namely transforming the (monetary) incentives and changing the meaning or...

Persistent link: https://www.econbiz.de/10009583884

From full to bounded rationality : the limits of unlimited rationality

Güth, Werner; Kliemt, Hartmut - 2001

choice making. We illustrate why this role is not being fulfilled well by standard models of full rationality and that … theories of bounded rationality are needed not only for better predictions, but also for developing better advice. Our main … point is that one cannot succeed here without studying how theories of bounded rationality causally influence the behavior …

Persistent link: https://www.econbiz.de/10009612562

Trust in the shadow of the courts if judges are no better

Brennan, Geoffrey; Güth, Werner; Kliemt, Hartmut - 1997

Can a court system conceivably control opportunistic behavior if judges are selected from the same population as ordinary citizens and thus are no better than "the rest of us"? This paper provides a new and, as we claim, quite profound "rational choice" answer to that unsolved riddle. Adopting...

Persistent link: https://www.econbiz.de/10009657895

Hotelling games with three, four, and more players

Brenner, Steffen - 2001

In this paper the standard Hotelling model with quadratic transport costs is extended to the multi-firm case. The sequential game consists of a location choice stage and a price setting stage. Considering locational equilibria it is shown that neither holds the Principle of Maximum...

Persistent link: https://www.econbiz.de/10009613612

Experimental "beauty contests" with homogeneous and heterogeneous players and with interior and boundary equilibria

Güth, Werner; Kocher, Martin; Sutter, Matthias - 2001

We study behavior in experimental beauty contests with, first, boundary and interior equilibria, and, second, homogeneous and heterogenous types of players. We find quicker and better convergence to the game-theoretic equilibrium with interior equilibria and homogeneous players. -- beauty...

Persistent link: https://www.econbiz.de/10009614296

The third generation (UMTS) spectrum auction in Germany

Grimm, Veronika; Riedel, Frank; Wolfstetter, Elmar - 2001

The third generation UMTS auction in Germany raised an enormous amount of revenue, and at the same time achieved a more competitive market structure than other UMTS auctions in Europe. The present paper explains the design of that auction, and presents a game theoretic explanation of observed...

Persistent link: https://www.econbiz.de/10009615427

Information cascades on the labor market

Kübler, Dorothea; Weizsäcker, Georg - 2001

A model of herding behavior on the labor market is discussed where employers only receive signals with limited precision about the workers' types, but can observe previous employers' decisions. In particular, we study a situation where the employer and the worker can influence the signal...

Persistent link: https://www.econbiz.de/10009616781

Simultaneous and sequential price competition in heterogeneous duopoly markets : experimental evidence

Kübler, Dorothea; Müller, Wieland - 2001

We investigate simultaneous and sequential price competition in duopoly markets with differentiated products. In both markets symmetric firms are repeatedly and randomly matched. The strategy method is used to elicit behavior in the sequential market. We find that average leader prices in the...

Persistent link: https://www.econbiz.de/10009617949