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Traditional game theory usually relies on commonly known decision rationality meaning that choices are made in view of … their consequences (the shadow of the future). Evolutionary game theory, however, denies any cognitive deliberation by …
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Traditional game theory usually relies on commonly known decision rationality meaning that choices are made in view of … their consequences (the shadow of the future). Evolutionary game theory, however, denies any cognitive deliberation by …
Persistent link: https://www.econbiz.de/10005866852
In capacity-then-price-setting games, soft capacity constraints are planned sales amounts where producing above capacity is possible but more costly. While the subgame perfect equilibrium predicts equal prices, experimental evidence often reveals price discrepancies. This failure to coordinate...
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