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consumption have direct utility-consequences. This gives rise to informational preferences, i.e., preferences over the timing and …
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incorporating (the level of) absolute wealth in the individual's utility function. …
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The most fundamental solution concepts in Game Theory Nash equilibrium, backward induction, and iterated elimination of dominated strategies are based on the assumption that people are capable of predicting others' actions. These concepts require people to be able to view the game from the other...
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