Showing 1 - 10 of 10
By identifying types whose low-order beliefs – up to level li – about the state of nature coincide, we obtain quotient type spaces that are typically smaller than the original ones, preserve basic topological properties, and allow standard equilibrium analysis even under bounded reasoning....
Persistent link: https://www.econbiz.de/10009327882
This paper is concerned with the realism of mechanisms that implement social choice functions in the traditional sense. Will agents actually play the equilibrium assumed by the analysis? As an example, we study the convergence and stability properties of Sj\"ostr\"om's (1994) mechanism, on the...
Persistent link: https://www.econbiz.de/10005772028
The evolution of boundedly rational rules for playing normal form games is studied within stationary environments of stochastically changing games. Rules are viewed as algorithms prescribing strategies for the different normal form games that arise. It is shown that many of the folk results of...
Persistent link: https://www.econbiz.de/10005772034
When can a single variable be more accurate in binary choice than multiple sources of information? We derive analytically the probability that a single variable (SV) will correctly predict one of two choices when both criterion and predictor are continuous variables. We further provide analogous...
Persistent link: https://www.econbiz.de/10005772123
This paper studies the equilibrating process of several implementation mechanisms using naive adaptive dynamics. We show that the dynamics converge and are stable, for the canonical mechanism of implementation in Nash equilibrium. In this way we cast some doubt on the criticism of ``complexity''...
Persistent link: https://www.econbiz.de/10005772289
The effectiveness of decision rules depends on characteristics of both rules and environments. A theoretical analysis of environments specifies the relative predictive accuracies of the lexicographic rule 'take-the-best' (TTB) and other simple strategies for binary choice. We identify three...
Persistent link: https://www.econbiz.de/10005772523
Working Paper no longer available. Please contact the author.
Persistent link: https://www.econbiz.de/10005772544
In an experimental standard Cournot Oligopoly we test the importance of models of behavior characterized by imitation of succesful behavior. We find that the players appear to the rather reluctant to imitate.
Persistent link: https://www.econbiz.de/10005772585
We extend Aumann's [3] theorem, deriving correlated equilibria as a consequence of common priors and common knowledge of rationality, by explicitly allowing for non-rational behavior. We replace the assumption of common knowledge of rationality with a substantially weaker one, joint p-belief of...
Persistent link: https://www.econbiz.de/10011186266
"Beauty-contest" is a game in which participants have to choose, typically, a number in [0,100], the winner being the person whose number is closest to a proportion of the average of all chosen numbers. We describe and analyze Beauty-contest experiments run in newspapers in UK, Spain, and...
Persistent link: https://www.econbiz.de/10005572672