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Games and cost of change

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  • 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
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    References listed on IDEAS

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