This paper examines the conception of individuals as being of certain types in Harsanyi'stransformation of games of incomplete information into games of complete information. Itargues that while the conception of the individual in games of complete information offerspotential advances over the...

A successful speculative attack against one currency is a wake-up call for speculators elsewhere. Currency speculators have an incentive to acquire costly information about exposures across countries to infer whether their monetary authority's ability to defend its currency is weakened....

We experimentally test whether the possibility of building a reputation impacts behavior in the manner suggested by theory. Our unified reputation framework theoretically allows for either the good or the bad reputation prediction to emerge. Our design additionally varies whether reputation...

We introduce a novel method to elicit strategies in indefinitely repeated games and apply it to games of strategic substitutes and complements. We find that out of 256 possible unit recall machines (and 1024 full strategies) participants could use, only five machines are used more than 5 percent...

Empirical and experimental findings suggest that players may underestimate others' private information in incomplete-information games. We modify standard epistemic assumptions of static incomplete-information games to allow partial signal-awareness. That is, players can be unaware of some of...

Incomplete information, local interaction and random matching games all share a common structure. A type or player interacts with various subsets of the set of all types/players. A type/player's total payoff is additive in the payoffs from these various interactions. This paper describes a...

This paper shows that the opportunity costs resulting from economic interdependence decrease the equilibrium probability of war in an incomplete information game. This result is strongly consistent with existing empirical analyses of the inverse trade-conflict relationship, but is the opposite...

We study experimentally "partnership protocols" of the sort proposed by Kalai and Kalai (2010), for bilateral trade games with incomplete information. We utilize the familiar game analyzed by Chatterjee and Samuelson (1983) and Myerson and Sattherwaite (1983), with a buyer and seller with value...

This paper investigates how incomplete information impacts the response of prices to nominal shocks. Our baseline model is a variant of the Calvo model in which firms observe the underlying nominal shocks with noise. In this mode, the response of prices is pinned down by three parameters: the...

The housing rental market offers a unique laboratory for studying price stickiness. This paper is motivated by two facts: 1. Tenants' rents are remarkably sticky even though regular and expected recontracting would, by itself, suggest substantial rent flexibility. 2. Rent stickiness varies...