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Uncertain rationality, depth of reasoning and robustness in games with incomplete information

Germano, Fabrizio; Weinstein, Jonathan; Zuazo-Garin, Peio - In: Theoretical economics : TE ; an open access journal in … 15 (2020) 1, pp. 89-122

unique rationalizable action. This paper studies how a wide class of departures from common belief in rationality impact … attach to (n- 1)th-order belief in rationality. We find that Weinstein and Yildiz's discontinuity remains when λn is above an … appropriate threshold for all n, but fails when λn converges to 0. That is, if players' confidence in mutual rationality persists …

Persistent link: https://www.econbiz.de/10012159030

Uncertain rationality, depth of reasoning and robustness in games with incomplete information

Germano, Fabrizio; Weinstein, Jonathan; Zuazo-Garin, Peio - 2016

Persistent link: https://www.econbiz.de/10011686497

Uncertain rationality, depth of reasoning and robustness in games with incomplete information

Germano, Fabrizio; Weinstein, Jonathan; Zuazo-Garin, Peio - 2016

Persistent link: https://www.econbiz.de/10011607371

Salience and strategy choice in 2 × 2 games

Leland, Jonathan W.; Schneider, Mark - In: Games 6 (2015) 4, pp. 521-559

We present a model of boundedly rational play in single-shot 2 × 2 games. Players choose strategies based on the perceived salience of their own payoffs and, if own-payoff salience is uninformative, on the perceived salience of their opponent's payoffs. When own payoffs are salient, the model's...

Persistent link: https://www.econbiz.de/10011383906

Cognitive Hierarchies and the Centipede Game

Bottero, Margherita - 2010

In this work, I extend the normal form cognitive hierarchy model (Camerer et al. (2004)) to a class of finite two-person extensive form games. I study two versions of such a model: the first is as faithful as possible to the normal form assumptions, while the second modifies them slightly. In...

Persistent link: https://www.econbiz.de/10013148058

Robust multiplicity with a grain of naiveté

Heifetz, Aviad; Kets, Willemien - In: Theoretical economics : TE ; an open access journal in … 13 (2018) 1, pp. 415-465

Rationalizability is a central concept in game theory. Since there may be many rationalizable strategies, applications …

Persistent link: https://www.econbiz.de/10011855899

Extensive-form level-k thinking

Schipper, Burkhard; Zhou, Hang - 2022

-k thinking in the associated normal-form, extensive-form rationalizability, ∆-rationalizability, iterated admissibility, and …

Persistent link: https://www.econbiz.de/10013350881

Beyond quantified ignorance : rebuilding rationality without the bias bias

Brighton, Henry - 2019

If we reassess the rationality question under the assumption that the uncertainty of the natural world is largely … theory of ecological rationality. The main casualty of this rebuilding process is optimality. Once we view optimality as a … formal implication of quantified uncertainty rather than an ecologically meaningful objective, the rationality question …

Persistent link: https://www.econbiz.de/10011990913

Rational Inattention with Ambiguity Aversion

Fabbri, Francesco - 2023

We develop a tractable framework incorporating ambiguity aversion into rational inattention. We model uncertainty using smooth ambiguity (Klibanoff, Marinacci, and Mukerji, 2005) and define entropy-based information costs on the predictive prior distribution, which allows us to rewrite the...

Persistent link: https://www.econbiz.de/10014354260

On the psychological foundations of ambiguity and compound risk aversion

Wu, Keyu; Fehr, Ernst; Hofland, Sean; Schonger, Martin - 2024

attitudes towards ambiguity and compound risk which suggests that compound risk aversion may provide a psychological foundation … for ambiguity aversion. However, compound risk aversion and ambiguity aversion may also be independent psychological …’s ability to reduce compound to simple risks, and analyzing how this affects their compound risk and ambiguity attitudes in …

Persistent link: https://www.econbiz.de/10014544917