A Theory of Deception
Abstract
This paper proposes an equilibrium approach to belief manipulation and deception in which agents only have coarse knowledge of their opponent's strategy. Equilibrium requires the coarse knowledge available to agents to be correct, and the inferences and optimizations to be made on the basis of the simplest theories compatible with the available knowledge. The approach can be viewed as formalizing into a game theoretic setting a well documented bias in social psychology, the fundamental attribution error. It is applied to a bargaining problem, thereby revealing a deceptive tactic that is hard to explain in the full rationality paradigm. (JEL C78, D83, D84)Download Info
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Bibliographic Info
Article provided by American Economic Association in its journal American Economic Journal: Microeconomics.
Volume (Year): 2 (2010)
Issue (Month): 1 (February)
Pages: 1-20
Note: DOI: 10.1257/mic.2.1.1
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Related research
Keywords:Other versions of this item:
- Jehiel, Philippe & Ettinger, David, 2010. "A theory of deception," Open Access publications from Université Paris-Dauphine urn:hdl:123456789/5434, Université Paris-Dauphine.
- David Ettinger & Philippe Jehiel, 2010. "A Theory of Deception," Post-Print hal-00701286, HAL.
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sendhil Mullainathan & Joshua Schwartzstein & Andrei Shleifer, 2008.
"Coarse Thinking and Persuasion,"
The Quarterly Journal of Economics,
MIT Press, vol. 123(2), pages 577-619, 05.
- Sendhil Mullainathan & Joshua Schwartzstein & Andrei Shleifer, 2006. "Coarse Thinking and Persuasion," NBER Working Papers 12720, National Bureau of Economic Research, Inc.
- Olivier Compte & Andrew Postlewaite, 2008.
"Repeated Relationships with Limits on Information Processing,"
Levine's Working Paper Archive
122247000000002307, David K. Levine.
- Andrew Postlewaite & Olivier Compte, 2008. "Repeated Relationships with Limits on Information Processing," PIER Working Paper Archive 08-026, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
- Ignacio Esponda, 2008. "Behavioral Equilibrium in Economies with Adverse Selection," American Economic Review, American Economic Association, vol. 98(4), pages 1269-91, September.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Emir Kamenica & Matthew Gentzkow, 2009.
"Bayesian Persuasion,"
NajEcon Working Paper Reviews
814577000000000369, www.najecon.org.
- Emir Kamenica & Matthew Gentzkow, 2009. "Bayesian Persuasion," NBER Working Papers 15540, National Bureau of Economic Research, Inc.
- Asen Ivanov & Dan Levin & James Peck, 2009.
"Hindsight, Foresight, and Insight: An Experimental Study of a Small-Market Investment Game with Common and Private Values,"
American Economic Review,
American Economic Association, vol. 99(4), pages 1484-1507, September.
- Asen Ivanov & Dan Levin & James Peck, 2008. "Hindsight, Foresight, and Insight: An Experimental Study of a Small-Market Investment Game with Common and Private Values," Working Papers 0801, VCU School of Business, Department of Economics.
- Philippe Jehiel & Larry Samuelson, 2011.
"Reputation with Analogical Reasoning,"
Levine's Working Paper Archive
786969000000000304, David K. Levine.
- Philippe Jehiel & Larry Samuelson, 2012. "Reputation with Analogical Reasoning," The Quarterly Journal of Economics, Oxford University Press, vol. 127(4), pages 1927-1969.
- Huck, Steffen & Jehiel, Philippe & Rutter, Tom, 2011. "Feedback spillover and analogy-based expectations: A multi-game experiment," Games and Economic Behavior, Elsevier, vol. 71(2), pages 351-365, March.
- Christoph March, 2011. "Adaptive social learning," PSE Working Papers halshs-00572528, HAL.
- Andreas Blume & Oliver Board, 2009.
"Intentional Vagueness,"
Working Papers
381, University of Pittsburgh, Department of Economics, revised May 2009.
- Oliver Board & Andreas Blume, 2008. "Intentional Vagueness," Working Papers 365, University of Pittsburgh, Department of Economics, revised Aug 2008.
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