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Abstract

I explore the idea that people care about the justifiability of their decisions in the context of two-person extensive games. Each player justifies his strategy s with a belief b of the opponent's strategy, which is consistent with the play path and maximally plausible (according to some exogenous criterion). We say that s is justifiable if against the ex post criticism that some other strategy s outperforms s against b, the player can argue that playing s would have exposed him to similar criticism in the opposite direction. Under a simplicity-based plausibility criterion, this concept implies systematic departures from maximizing behaviour in familiar games. Copyright 2002 by The Review of Economic Studies Limited

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Article provided by Wiley Blackwell in its journal Review of Economic Studies.

Volume (Year): 69 (2002)
Issue (Month): 3 (July)
Pages: 691-706

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Handle: RePEc:bla:restud:v:69:y:2002:i:3:p:691-706

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Cited by:

1. Li, Duozhe, 2007. "Bargaining with history-dependent preferences," Journal of Economic Theory, Elsevier, vol. 136(1), pages 695-708, September.
2. Ran Spiegler, 2001. "Testing Threats in Repeated Games," Economics Working Papers 0009, Institute for Advanced Study, School of Social Science.
   
   • Spiegler, Ran, 2005. "Testing threats in repeated games," Journal of Economic Theory, Elsevier, vol. 121(2), pages 214-235, April.
   • Ran Spiegler, 2002. "Testing Threats in Repeated Games," NajEcon Working Paper Reviews 391749000000000445, www.najecon.org.
   • Spiegler, R, 2005. "Testing threats in repeated games," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
   • Ran Spiegler, 2002. "Testing Threats in Repeated Games," Levine's Working Paper Archive 391749000000000445, David K. Levine.
   • Spiegler, R., 2001. "Testing Threats in Repeated Games," Papers 2001-28, Tel Aviv.
3. Lombardi, Michele, 2009. "Reason-based choice correspondences," Mathematical Social Sciences, Elsevier, vol. 57(1), pages 58-66, January.
   
   • Michele Lombardi, 2007. "Reason-Based Choice Correspondences," Working Papers 607, Queen Mary, University of London, School of Economics and Finance.
4. Spiegler, Ran, 2004. "Simplicity of beliefs and delay tactics in a concession game," Games and Economic Behavior, Elsevier, vol. 47(1), pages 200-220, April.
   
   • Ran Spiegler, 2003. "Simplicity of Beliefs and Delay Tactics in a Concession Game," Levine's Working Paper Archive 506439000000000208, David K. Levine.
   • Spiegler, R, 2004. "Simplicity of beliefs and delay tactics in a concession game," Open Access publications from University College London http://discovery.ucl.ac.u, University College London.
5. Suren Basov & Svetlana Danilkina, 2007. "Auctions with Opportunistic Experts," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 7(1), pages 40.
6. Sandroni, Alvaro & Cherepavov, Vadim & Feddersen, Timothy, 0. "Rationalization," Theoretical Economics, Econometric Society.
7. Maenner, Eliot, 2008. "Adaptation and complexity in repeated games," Games and Economic Behavior, Elsevier, vol. 63(1), pages 166-187, May.

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