Showing 1 - 10 of 59
We show that the use of communications to coordinate equilibria generates a Nash-threats folk theorem in two-player games with “almost public†information. The results generalize to the <i>n</i>-person case. However, the two-person case is more difficult because it is not possible to sustain...
Persistent link: https://www.econbiz.de/10010986609
This essay discusses the field of behavioral economics, with a focus on the papers in <i>Advances in Behavioral Economics</i>. These papers show that there is a body of “behavioral facts†that is both economically significant and regular enough to be modeled. For the field to advance further,...
Persistent link: https://www.econbiz.de/10010986610
This paper studies the set of equilibrium payoffs in repeated games with long- and short-run players and little discounting. Because the short-run players are unconcerned about the future, each equilibrium outcome is constrained to lie on their static reaction (best-response) curves. The natural...
Persistent link: https://www.econbiz.de/10010986611
Forecasts are said to be calibrated if the frequency predictions are approximately correct. This is a refinement of an idea first introduced by David Blackwell in 1955. We show that “<i>K</i>-initialized myopic strategies†are approximately calibrated when <i>K</i> is large. These strategies first...
Persistent link: https://www.econbiz.de/10010986618
This paper studies the effect of randomness in per-period matching on the long-run outcome of non-equilibrium adaptive processes. If there are many matchings between each strategy revision, the randomness due to matching will be small; our question is when a very small noise due to matching has...
Persistent link: https://www.econbiz.de/10010986621
Players choose an action before learning an outcome chosen according to an unknown and history-dependent stochastic rule. Procedures that categorize outcomes, and use a randomized variation on fictitious play within each category are studied. These procedures are “conditionally...
Persistent link: https://www.econbiz.de/10010986623
We examine games played by a single large player and a large number of opponents who are small, but not anonymous. If the play of the small players is observed with noise, and if the number of actions the large player controls is bounded as the number of small players grows, the equilibrium set...
Persistent link: https://www.econbiz.de/10010859052
Persistent link: https://www.econbiz.de/10010859053
Presents a correction to an article on rational expectations in business cycles.
Persistent link: https://www.econbiz.de/10010859058
"Income smoothing" is the process of manipulating the time profile of earnings or earnings reports to make the reported income stream less variable. This paper builds a theory of income smoothing based on the managers' concern about keeping their position or avoiding interference, and on the...
Persistent link: https://www.econbiz.de/10010859075