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knowledge of rationality and market clearing? To address this question we define an epistemic model for the economy that … that are consistent with common knowledge of rationality and market clearing (henceforth, CKRMC outcomes) in terms of a … with common knowledge of rationality and market clearing even when there is common knowledge that there are no mutual gains …
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Theories in political economy depend critically on assumptions about motivations of politicians. Our analysis starts from the premise that politicians, like other economic agents, are rational individuals who make career decisions by comparing the expected returns of alternative choices. The...
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