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Analogy-based Expectations and the Partially Cursed Equilibrium

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Abstract

Recent literature has questioned the existence of a learning foundation for the partially cursed equilibrium. This paper closes the gap by showing that a partially cursed equilibrium corresponds to a particular analogy-based expectation equilibrium.

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File URL: http://swopec.hhs.se/hastef/papers/hastef0708.pdf
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Bibliographic Info

Paper provided by Stockholm School of Economics in its series Working Paper Series in Economics and Finance with number 708.

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Length: 8 pages
Date of creation: 15 Aug 2008
Date of revision: 12 Dec 2008
Handle: RePEc:hhs:hastef:0708

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Related research

Keywords: Analogy Expectations; Bounded Rationality; Curse; Learning;

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References

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  1. Vincent P. Crawford & Nagore Iriberri, 2006. "Level-k Auctions: Can a Non-Equilibrium Model of Strategic Thinking Explain the Winner's Curse and Overbidding in Private-Value Auctions?," Levine's Bibliography 321307000000000256, UCLA Department of Economics.
  2. Philippe Jeniel, 2001. "Analogy-Based Expectation Equilibrium," Economics Working Papers 0003, Institute for Advanced Study, School of Social Science.
  3. Topi Miettinen, 2012. "Paying attention to payoffs in analogy-based learning," Economic Theory, Springer, vol. 50(1), pages 193-222, May.
  4. Eddie Dekel & Drew Fudenberg & David K Levine, 2002. "Learning to Play Bayesian Games," Levine's Working Paper Archive 625018000000000151, David K. Levine.
  5. Fudenberg, Drew, 2006. "Advancing Beyond "Advances in Behavioral Economics"," Scholarly Articles 3208222, Harvard University Department of Economics.
  6. Philippe Jehiel & Frédéric Koessler, 2006. "Revisiting Games of Incomplete Information with Analogy-Based Expectations," Levine's Bibliography 122247000000000252, UCLA Department of Economics.
  7. Drew Fudenberg, 2006. "Advancing Beyond Advances in Behavioral Economics," Journal of Economic Literature, American Economic Association, vol. 44(3), pages 694-711, September.
  8. Ignacio Esponda, 2008. "Behavioral Equilibrium in Economies with Adverse Selection," American Economic Review, American Economic Association, vol. 98(4), pages 1269-91, September.
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