A Theory of Deception
AbstractThis paper proposes an equilibrium approach to belief manipulation and deception in which agents only have coarse knowledge of their opponent's strategy. Equilibrium requires the coarse knowledge available to agents to be correct, and the inferences and optimizations to be made on the basis of the simplest theories compatible with the available knowledge. The approach can be viewed as formalizing into a game theoretic setting a well documented bias in social psychology, the fundamental attribution error. It is applied to a bargaining problem, thereby revealing a deceptive tactic that is hard to explain in the full rationality paradigm.
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Bibliographic InfoPaper provided by HAL in its series Post-Print with number hal-00701286.
Date of creation: 2010
Date of revision:
Publication status: Published, American Economic Journal: Microeconomics, 2010, 2, 1, 1-20
Note: View the original document on HAL open archive server: http://hal.archives-ouvertes.fr/hal-00701286
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Other versions of this item:
- C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
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