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This paper uses variations in a popular parlor game to provide useful instructional benefits. The paper builds a classroom activity to nudge students towards thinking in a backward-inductive manner. The pedagogic innovation is in introducing the game repeatedly with progressively smaller action...
Persistent link: https://www.econbiz.de/10013132867
Rational choice presupposes that people do what they like better than any available alternative. If, however, we mistrust what they declare to like or what psychology is supposed to tell us about it (a pardonable enough mistrust), we can only infer what they like from observing what they do. We...
Persistent link: https://www.econbiz.de/10013083144
Theoretically, this work relaxes the rationality behind IESDS in the normal-form game and Backward Induction in the … extensive-form game, namely common p-believe in rationality in the normal-form game and common p-belief in the opponent’s future … rationality in the extensive-form game. Exper- imentally, this work uses the experimental data from Masaki, Guillaume, and Sevgi …
Persistent link: https://www.econbiz.de/10014357433
characterizes common certainty of rationality in the universal type space. …
Persistent link: https://www.econbiz.de/10011702628
In the literature of psychology and economics it is frequently observed that individuals tend to imitate similar individuals. A fundamental question is whether the outcome of such imitation can be consistent with self-interested behaviour. We propose that this consistency requires the existence...
Persistent link: https://www.econbiz.de/10011593822
Games in which players aim to guess a fraction or multiple p of the average guess are known as guessing games or (p-)beauty contests. In this note, we derive a full characterization of the set of rationalizable strategies and the set of pure strategy Nash equilibria for such games as a function...
Persistent link: https://www.econbiz.de/10012962808
I study the evolution of rationality, using an indirect evolutionary approach, in which nature selects a decision …-making procedure, and the procedure chooses actions in matching-games. The main result is that in order for (knowledge of) rationality …
Persistent link: https://www.econbiz.de/10014150983
In this study we propose a formal framework for the indirect evolutionary approach initiated by Guth and Yaari. It allows us to endogenize preferences and to study their evolution. We define two-player indirect evolutionary games with observable types and show how to incorporate symmetric as...
Persistent link: https://www.econbiz.de/10014151134
When evaluating the rationality of a player in an epistemic model of a noncooperative game one has to examine … deviation actually occurs. I show that, in this extended model, common knowledge of rationality need not lead to … rationalizability. I also present assumptions that allow rationalizability to be a consequence of common knowledge of rationality in …
Persistent link: https://www.econbiz.de/10014057722
The literary source of the main ideas in Aumann's article "Backward Induction and Common Knowledge of Rationality" is …
Persistent link: https://www.econbiz.de/10014088854