In the models of Young (1993a,b), boundedly rational indivudals are recurrently matched to play myopic best replies to the recent history of play. It could therefore be an advantage to instead play a myopic best reply tthe myopic best reply, something boundedly rational players might conceivably also do. We investigate this possibility in the context of Young's (1993b) bargaining model.
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Length: 11 pages Date of creation: 1998 Date of revision: Handle: RePEc:fth:iniesr:507
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Find related papers by JEL classification: C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
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Francesco Squintani, 1999.
"Moral Hazard,"
Discussion Papers
1269, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
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