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Social Conformity and Bounded Rationality in Arbitrary Games with Incomplete Information: Some First Results

Cartwright, Edward; Wooders, Myrna - 2003

In has been frequently observed, in both economics and psychology, that individuals tend to conform to the choices of other individuals with whom thy identify. Can such conformity be consistent with self-interested behaviour? To address this question we use the framework of games with incomplete...

Persistent link: https://www.econbiz.de/10011325147

The homo economicus under experimental attack

Schlicht, Ekkehart - 2020

For non-economists, it is often difficult to understand why economists place so much emphasis on the self-interest motive. It is obvious that people act out of a variety of motives - gratitude, anger, social obligation and many, many other motives. There are several reasons why economists still...

Persistent link: https://www.econbiz.de/10012695508

Cheap Talk, Gullibility, and Welfare in an Environmental Taxation Game

Deissenberg, Christophe; Dawid, Herbert; Sevcik, Pavel - 2004

We consider a simple dynamic model of environmental taxation that exhibits time inconsistency. There are two categories of firms, Believers, who take the tax announcements made by the Regulator to face value, and Non-Believers, who perfectly anticipate the Regulator's decisions, albeit at a...

Persistent link: https://www.econbiz.de/10011325007

Near-rational exuberance

Bullard, James; Evans, George W.; Honkapohja, Seppo - 2005

We study how the use of judgement or “add-factors” in macroeconomic forecasting may disturb the set of equilibrium outcomes when agents learn using recursive methods. We isolate conditions under which new phenomena, which we call exuberance equilibria, can exist in standard macroeconomic...

Persistent link: https://www.econbiz.de/10011604601

Information Overload in Multi-Stage Selection Procedures

Ficco, Stefano; Karamychev, Vladimir A. - 2004

The paper studies information processing imperfections in a fully rational decision-making network. It is shown that imperfect information transmission and imperfect information acquisition in a multi-stage selection game yield information overload. The paper analyses the mechanisms responsible...

Persistent link: https://www.econbiz.de/10010325568

Learning foundation for the cursed equilibrium

Miettinen, Topi - 2008

Recent literature has questioned the existence of a learning foundation for the partially cursed equilibrium. This paper closes the gap by showing that a partially cursed equilibrium corresponds to a particular analogy-based expectation equilibrium.

Persistent link: https://www.econbiz.de/10010266678

Stochastically stable implementation

Cabrales, Antonio; Serrano, Roberto - In: SERIEs - Journal of the Spanish Economic Association 3 (2012) 1/2, pp. 59-72

Restricting attention to economic environments, we study implementation under perturbed better-response dynamics (BRD). A social choice function (SCF) is implementable in stochastically stable strategies of perturbed BRD whenever the only outcome supported by the stochastically stable strategies...

Persistent link: https://www.econbiz.de/10010317077

Learning to Play Approximate Nash Equilibria in Games with Many Players

Cartwright, Edward - 2004

We illustrate one way in which a population of boundedly rational individuals can learn to play an approximate Nash equilibrium. Players are assumed to make strategy choices using a combination of imitation and innovation. We begin by looking at an imitation dynamic and provide conditions under...

Persistent link: https://www.econbiz.de/10011324955

Models of individual behaviour and implications for environmental policy

van den Bergh, Jeroen C. J. M.; Ferrer-i-Carbonell, Ada; … - 1998

behaviour, formulated in terms of maximisation of utility in general, or profits in particular. The standard theory of … environmental economics behavioural assumptions have been most significant for the development of economic valuation theory and … environmental policy theory. The focus here will be on environmental policy theory. …

Persistent link: https://www.econbiz.de/10011608445

Macroeconomic modeling when agents are imperfectly informed

De Grauwe, Paul - 2008

DSGE-models have become important tools of analysis not only in academia but increasingly in the board rooms of central banks. The success of these models has much to do with the coherence of the intellectual framework it provides. The limitations of these models come from the fact that they...

Persistent link: https://www.econbiz.de/10010273776

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