How burning money requires a lot of rationality to be effective
AbstractThis paper proposes an extension of the valuation equilibrium concept (Jehiel and Samet, 2007), which partly endogenises the underlying grouping of actions. The effect on equilibrium predictions is illustrated in a burning money game.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 115 (2012)
Issue (Month): 1 ()
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Web page: http://www.elsevier.com/locate/ecolet
Bounded rationality; Burning money; Forward induction; Valuation equilibrium;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
Please 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.:
- Huck, Steffen & Muller, Wieland, 2005.
"Burning money and (pseudo) first-mover advantages: an experimental study on forward induction,"
Games and Economic Behavior,
Elsevier, vol. 51(1), pages 109-127, April.
- Huck, S. & Müller, W., 2005. "Burning money and (pseudo) first-mover advantages: An experimental study on forward induction," Open Access publications from Tilburg University urn:nbn:nl:ui:12-171348, Tilburg University.
- Philippe Jehiel & Dov Samet, 2006.
784828000000000111, UCLA Department of Economics.
- van Damme, Eric, 1989.
"Stable equilibria and forward induction,"
Journal of Economic Theory,
Elsevier, vol. 48(2), pages 476-496, August.
- Ariel Rubinstein, 1997.
"Finite automata play the repeated prisioners dilemma,"
Levine's Working Paper Archive
1639, David K. Levine.
- Rubinstein, Ariel, 1986. "Finite automata play the repeated prisoner's dilemma," Journal of Economic Theory, Elsevier, vol. 39(1), pages 83-96, June.
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