Level-k models have recently gained popularity as a framework for strategic behavior with bounded rationality. These models make two assumptions: agents of a higher level have richer beliefs, and can also perform more computations. I develop a model that incorporates Level-k models into games of...

In the theory of psychological games it is assumed that players preferences on material consequences depend on endogenous beliefs. Most of the applications of this theoretical framework assume that the psychological utility functions representing such preferences are common knowledge. But this...

This paper investigates empirically the relationship between inflation, inflation volatility and output growth in the case of México using monthly data over the period 1993-2011. Specifically a bivariate GARCH-M model is estimated to test the hypotheses that inflation rates are directly related...

This paper investigates empirically the relationship between inflation, inflation volatility and output growth in the case of México using monthly data over the period 1993-2011. Specifically a bivariate GARCH-M model is estimated to test the hypotheses that inflation rates are directly related...