IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v301y2021i1d10.1007_s10479-020-03585-w.html
   My bibliography  Save this article

Games and cost of change

Author

Listed:
  • Sjur Didrik Flåm

    (The University of Bergen)

Abstract

Most microeconomic and game theoretic models of individual choice overlook adjustment costs. Rather often, the modeler’s concern is just with improvement of objectives. This optic doesn’t quite fit agents somewhat tied to status quo. If rational, any such agent reasons whether moving to another state be worth his while. For that, the realized gains must outweigh the inconveniences of the move. Choosing games as chief setting, this paper offers some observations as to the fact that strategy change usually entails cost.

Suggested Citation

  • Sjur Didrik Flåm, 2021. "Games and cost of change," Annals of Operations Research, Springer, vol. 301(1), pages 107-119, June.
    • Handle: RePEc:spr:annopr:v:301:y:2021:i:1:d:10.1007_s10479-020-03585-w
    DOI: 10.1007/s10479-020-03585-w
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-020-03585-w
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-020-03585-w?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384, December.
    2. M. Beatrice Lignola & Jacqueline Morgan, 2017. "Inner Regularizations and Viscosity Solutions for Pessimistic Bilevel Optimization Problems," Journal of Optimization Theory and Applications, Springer, vol. 173(1), pages 183-202, April.
    3. Francesco Caruso & Maria Carmela Ceparano & Jacqueline Morgan, 2019. "Subgame Perfect Nash Equilibrium: A Learning Approach via Costs to Move," Dynamic Games and Applications, Springer, vol. 9(2), pages 416-432, June.
    4. Martin J. Osborne & Ariel Rubinstein, 1994. "A Course in Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262650401, December.
    5. Young, H. Peyton, 2004. "Strategic Learning and its Limits," OUP Catalogue, Oxford University Press, number 9780199269181.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francesco Caruso & Maria Carmela Ceparano & Jacqueline Morgan, 2022. "Asymptotic Behavior of Subgame Perfect Nash Equilibria in Stackelberg Games," CSEF Working Papers 661, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    2. Francesco Caruso & M. Beatrice Lignola & Jacqueline Morgan, 2020. "Regularization and Approximation Methods in Stackelberg Games and Bilevel Optimization," Springer Optimization and Its Applications, in: Stephan Dempe & Alain Zemkoho (ed.), Bilevel Optimization, chapter 0, pages 77-138, Springer.
    3. van Damme, E.E.C., 2000. "Non-cooperative Games," Discussion Paper 2000-96, Tilburg University, Center for Economic Research.
    4. van Damme, E.E.C., 2015. "Game theory : Noncooperative games," Other publications TiSEM ff518f2b-501f-4d99-817b-c, Tilburg University, School of Economics and Management.
    5. Konstantinos Georgalos & Indrajit Ray & Sonali SenGupta, 2020. "Nash versus coarse correlation," Experimental Economics, Springer;Economic Science Association, vol. 23(4), pages 1178-1204, December.
    6. Thijssen, J.J.J., 2003. "Investment under uncertainty, market evolution and coalition spillovers in a game theoretic perspective," Other publications TiSEM 672073a6-492e-4621-8d4a-0, Tilburg University, School of Economics and Management.
    7. Plan, Asaf, 2023. "Symmetry in n-player games," Journal of Economic Theory, Elsevier, vol. 207(C).
    8. Daley, Brendan & Sadowski, Philipp, 2017. "Magical thinking: A representation result," Theoretical Economics, Econometric Society, vol. 12(2), May.
    9. Zhang, Yang & Du, Xiaomin, 2017. "Network effects on strategic interactions: A laboratory approach," Journal of Economic Behavior & Organization, Elsevier, vol. 143(C), pages 133-146.
    10. Kimmich, Christian & Sagebiel, Julian, 2016. "Empowering irrigation: A game-theoretic approach to electricity utilization in Indian agriculture," Utilities Policy, Elsevier, vol. 43(PB), pages 174-185.
    11. Geir B. Asheim & Mark Voorneveld & Jörgen W. Weibull, 2016. "Epistemically Robust Strategy Subsets," Games, MDPI, vol. 7(4), pages 1-16, November.
    12. Poulsen, Anders & Poulsen, Odile, 2010. "Prisoner's Dilemma payoffs and the evolution of co-operative preferences," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(2), pages 158-162, April.
    13. Andrea Gallice, 2006. "Predicting one Shot Play in 2x2 Games Using Beliefs Based on Minimax Regret," Working Papers 2006.31, Fondazione Eni Enrico Mattei.
    14. Hausken, Kjell, 2007. "Reputation, incomplete information, and differences in patience in repeated games with multiple equilibria," Economics Letters, Elsevier, vol. 97(2), pages 138-144, November.
    15. Yiyin Cao & Chuangyin Dang & Yabin Sun, 2022. "Complementarity Enhanced Nash’s Mappings and Differentiable Homotopy Methods to Select Perfect Equilibria," Journal of Optimization Theory and Applications, Springer, vol. 192(2), pages 533-563, February.
    16. Jiawen Tang & Di Wang & Wei Ye & Bing Dong & Huijuan Yang, 2022. "Safety Risk Assessment of Air Traffic Control System Based on the Game Theory and the Cloud Matter Element Analysis," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    17. Heymann, Benjamin & De Lara, Michel & Chancelier, Jean-Philippe, 2022. "Kuhn's equivalence theorem for games in product form," Games and Economic Behavior, Elsevier, vol. 135(C), pages 220-240.
    18. Gallice, Andrea, 2007. "Best Responding to What? A Behavioral Approach to One Shot Play in 2x2 Games," Discussion Papers in Economics 1365, University of Munich, Department of Economics.
    19. Arnaud Wolff, 2019. "On the Function of Beliefs in Strategic Social Interactions," Working Papers of BETA 2019-41, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    20. Anders Poulsen & Gert Svendsen, 2005. "Social Capital and Endogenous Preferences," Public Choice, Springer, vol. 123(1), pages 171-196, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:301:y:2021:i:1:d:10.1007_s10479-020-03585-w. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.