IDEAS home Printed from https://ideas.repec.org/a/spr/joecth/v27y2006i3p615-641.html
   My bibliography  Save this article

Mistaken self-perception and equilibrium

Author

Listed:
  • Francesco Squintani

Abstract

Motivated by real-world information economics problems and by experimental findings on overconfidence, this paper introduces a general epistemic construction to model strategic interaction with incomplete information, where the players’ self-perception may be mistaken. This allows us to rigorously describe equilibrium play, by formulating appropriate equilibrium concepts. We show that there always exist “objective” equilibria, where the players correctly anticipate each other’s strategies without attempting to make sense of them, and that these outcomes coincide with the equilibria of an associated Bayesian game with subjective priors. In population games, these equilibria can also be always introspectively rationalized by the players, despite their possibly mistaken self-perception. Copyright Springer-Verlag Berlin/Heidelberg 2006

Suggested Citation

  • Francesco Squintani, 2006. "Mistaken self-perception and equilibrium," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 27(3), pages 615-641, April.
    • Handle: RePEc:spr:joecth:v:27:y:2006:i:3:p:615-641
    DOI: 10.1007/s00199-004-0590-5
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s00199-004-0590-5
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s00199-004-0590-5?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.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Luís Santos-Pinto, 2008. "Positive Self-image and Incentives in Organisations," Economic Journal, Royal Economic Society, vol. 118(531), pages 1315-1332, August.
    2. Joseph Greenberg & Sudheer Gupta & Xiao Luo, 2009. "Mutually acceptable courses of action," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 40(1), pages 91-112, July.
    3. Diego García & Francesco Sangiorgi & Branko Urošević, 2007. "Overconfidence and Market Efficiency with Heterogeneous Agents," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 30(2), pages 313-336, February.
    4. Tilman Klumpp & Xuejuan Su, 2013. "A theory of perceived discrimination," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 53(1), pages 153-180, May.
    5. Ludwig, Sandra & Wichardt, Philip C. & Wickhorst, Hanke, 2011. "On the Positive Effects of Overcon fident Self-Perception in Teams," Discussion Papers in Economics 12246, University of Munich, Department of Economics.
    6. Luís Santos-Pinto, 2010. "Positive Self-Image In Tournaments," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(2), pages 475-496, May.
    7. Luis Santos-Pinto & Tiago Pires, 2020. "Overconfidence and Timing of Entry," Games, MDPI, vol. 11(4), pages 1-19, October.

    More about this item

    Keywords

    Overconfidence; Equilibrium.;

    Statistics

    Access and download statistics

    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:joecth:v:27:y:2006:i:3:p:615-641. 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.

    We have no bibliographic references for this item. You can help adding them by using 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.