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Loss avoidance in nominal frames and fairness in downward nominal wage rigidity and disinflation
Lunardelli, André - Volkswirtschaftliche Fakultät, … - 2009
This paper proposes a more general definition of loss avoidance, relates it to fairness and applies it to the labor market. By influencing judgments about what is a fair wage readjustment, it can lead to coordination failures, generating downward nominal wage rigidity (DNWR) and disinflation...
Persistent link: https://www.econbiz.de/10008615623
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Endogenous depth of reasoning
Alaoui, Larbi; Penta, Antonio - Department of Economics and Business, Universitat … - 2012
We introduce a model of strategic thinking in games of initial response. Unlike standard models of strategic thinking, in this framework the player's "depth of reasoning" is endogenously determined, and it can be disentangled from his beliefs over his opponent's cognitive bound. In our approach,...
Persistent link: https://www.econbiz.de/10010849599
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Endogenous Depth of Reasoning
Alaoui, Larbi; Penta, Antonio - Barcelona Graduate School of Economics (Barcelona GSE) - 2014
We introduce a model of strategic thinking in games of initial response. Unlike standard level-k models, in this framework the player's `depth of reasoning' is endogenously determined, and it can be disentangled from his beliefs over his opponent's cognitive bound. In our approach, individuals...
Persistent link: https://www.econbiz.de/10010851323
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On the structure of rationalizability for arbitrary spaces of uncertainty
Penta, Antonio - In: Theoretical Economics 8 (2013) 2
implications are discussed in the context of auctions, equilibrium refinements and in connection with the literature on global …
Persistent link: https://www.econbiz.de/10011019209
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Global Games: Theory and Applications
Morris, Stephen; Shin, Hyun Song - Cowles Foundation for Research in Economics, Yale University - 2000
equilibrium, allowing analysis of a number of economic models of coordination failure. For symmetric binary action global games …, equilibrium strategies in the limit (as noise becomes negligible) are simple to characterize in terms of 'diffuse' beliefs over …
Persistent link: https://www.econbiz.de/10005762807
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On the Structure of Rationalizability for Arbitrary Spaces of Uncertainty
Penta, Antonio - Department of Economics, University of Pennsylvania - 2008
This note characterizes the set A¡∞ of actions of player ¡ that are uniquely rationalizable for some hierarchy of beliefs on an arbitrary space of uncertainty. It is proved that for any rationalizable action a¡ for the type t¡, if a¡ belongs to A¡∞ and is justified by conjectures...
Persistent link: https://www.econbiz.de/10004979895
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Correlated Equilibrium via Hierarchies of Beliefs
Du, Songzi - Volkswirtschaftliche Fakultät, … - 2009
We study a model of correlated equilibrium where every player takes actions based on his hierarchies of beliefs (belief … does away with messages from outside mediator that are usually assumed in the interpretation of correlated equilibrium. We … procedure. If the procedure ends after k rounds of deletion for a correlated equilibrium obtained from hierarchies of beliefs …
Persistent link: https://www.econbiz.de/10005108469
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Correlated equilibrium and higher order beliefs about play
Du, Songzi - In: Games and Economic Behavior 76 (2012) 1, pp. 74-87
We study a refinement of correlated equilibrium in which playersʼ actions are driven by their beliefs and higher order … without a common prior, and up to any a priori fixed depth of reasoning. In every finite game “most” correlated equilibrium … equilibrium distributions based on the maximum order of beliefs used by players in the equilibrium. On the other hand, in a …
Persistent link: https://www.econbiz.de/10011049823
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Beliefs in Network Games (Revised version of CentER DP 2007-46)
Kets, W. - Tilburg University, Center for Economic Research - 2008
Networks can have an important effect on economic outcomes. Given the complexity of many of these networks, agents will generally not know their structure. We study the sensitivity of game-theoretic predictions to the specification of players’ (common) prior on the network in a setting where...
Persistent link: https://www.econbiz.de/10011090544
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Beliefs in Network Games (Replaced by CentER DP 2008-05)
Kets, W. - Tilburg University, Center for Economic Research - 2007
Networks can have an important effect on economic outcomes. Given the complexity of many of these networks, agents will generally not know their structure. We study the sensitivity of game-theoretical predictions to the specification of players’ (common) prior on the network in a setting where...
Persistent link: https://www.econbiz.de/10011091251