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Efficiency and Punishment in a Coordination Game: Voluntary Sanctions in the Minimum Effort Game

Lec, Fabrice Le; Rydval, Ondrej; Matthey, Astrid - Center for Economic Research and Graduate Education and … - 2014

Using a laboratory experiment, we examine whether voluntary monetary sanctions induce subjects to coordinate more efficiently in a repeated minimum effort coordination game. While most groups first experience inefficient coordination in a baseline treatment, the efficiency increases...

Persistent link: https://www.econbiz.de/10011144096

Evolution of theories of mind

Mohlin, Erik - In: Games and Economic Behavior 75 (2012) 1, pp. 299-318

This paper studies the evolution of peoplesʼ models of how other people think – their theories of mind. This is formalized within the level-k model, which postulates a hierarchy of types, such that type k plays a k times iterated best response to the uniform distribution. It is found that,...

Persistent link: https://www.econbiz.de/10011049877

Boundedly Rational versus Optimization-Based Models of Strategic Thinking and Learning in Games

Crawford, Vincent P. - In: Journal of Economic Literature 51 (2013) 2, pp. 512-27

Harstad and Seltenâ€™s article in this forum performs a valuable service by highlighting the dominance of optimization-based models over boundedly rational models in modern microeconomics, and questioning whether optimization-based models are a better way forward than boundedly rational...

Persistent link: https://www.econbiz.de/10011129964

Bargaining under surveillance: Evidence from a three-person ultimatum game

Saaksvuori, Lauri; Ramalingam, Abhijit - School of Economics, University of East Anglia - 2015

This paper examines how third-party surveillance influences preferences over distributional outcomes. In addition, we examine what motivates people to invest economic resources to monitor decision-making processes. Our results show that a large majority of individuals is willing to pay for a...

Persistent link: https://www.econbiz.de/10011201869

Contemporaneous Perfect Epsilon-Equilibria

Mailath, George; Postlewaite, Andrew; Samuelson, Larry - Department of Economics, University of Pennsylvania - 2003

We examine contemporaneous perfect epsilon-equilibria, in which a player’s actions after every history, evaluated at the point of deviation from the equilibrium, must be within epsilon of a best response. This concept implies, but is stronger than, Radner’s ex ante perfect...

Persistent link: https://www.econbiz.de/10005126726

Are smarter people really less risk averse?

Sousa, Sergio - 2010

Using hypothetical lottery choices to measure risk preferences, Frederick (2005) finds that higher cognitive ability is associated with less risk aversion. This paper documents, however, that when using an incentive compatible measure of risk preference, attitudes towards risk are not associated...

Persistent link: https://www.econbiz.de/10010277498

On rational choice and the representation of decision problems

Oliva, Paulo; Zahn, Philipp - In: Games 12 (2021) 4, pp. 1-21

, simplifying their choice process. For instance, in the case of a list he or she can use the order in which alternatives are … represented to make their choice. In this paper, we model representations and decision procedures operating on them. We show that … choice procedures are related to classical choice functions by a canonical mapping. Using this mapping, we can ask whether …

Persistent link: https://www.econbiz.de/10013200148

Imagine-self perspective-taking and rational self-interested behavior in a simple experimental normal-form game

Karbowski, Adam; Ramsza, Michał - In: Frontiers in Psychology 8 (2017), pp. 1-8

The purpose of this study is to explore the link between imagine-self perspective-taking and rational self-interested behavior in experimental normal-form games. Drawing on the concept of sympathy developed by Adam Smith and further literature on perspective taking in games, we hypothesize that...

Persistent link: https://www.econbiz.de/10011739260

Asset Price Trend Theory : Reframing Portfolio Theory from the Ground Up

Dubois, Robert - 2013

Traditional portfolio optimization models specify placement of capital as rather irrevocably and fully at risk through investment horizon(s) or continuously. Under this constraint, asset class allocation typically serves as primary mode of diversification, pursuing risk moderation by seeking to...

Persistent link: https://www.econbiz.de/10013084090

Taking MPT to the Next Level : The Tendency of Prices to Trend and the Importance of Exit Points

Dubois, Robert - 2013

From the painful unwinding of the S&L crisis to the onset of the most recent recession, equity and bond-friendly secular declines in interest and inflation rates gave the investing masses license to stretch Markowitz's Modern Portfolio Theory beyond its contextual foundations and to extrapolate...

Persistent link: https://www.econbiz.de/10013087793