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Beyond Normal Form Invariance: First Mover Advantage in Two-Stage Games with or without Predictable Cheap Talk

In: Rational Choice and Social Welfare

Author

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  • Peter J. Hammond

    (University of Warwick)

Abstract

Following Zermelo’s (1912) pioneering analysis of chess and similar games, von Neumann (1928) devised a standard paradigm, according to which multiperson decision problems in modern economic analysis and other social science are nearly always modeled as noncooperative games in strategic form. This paradigm relies on two key assumptions, of which the first can be stated as follows: Assumption 1. A multiperson decision problem is fully described by a game in extensive form, whose structure is commonly known to all players in the game.

Suggested Citation

  • Peter J. Hammond, 2008. "Beyond Normal Form Invariance: First Mover Advantage in Two-Stage Games with or without Predictable Cheap Talk," Studies in Choice and Welfare, in: Prasanta K. Pattanaik & Koichi Tadenuma & Yongsheng Xu & Naoki Yoshihara (ed.), Rational Choice and Social Welfare, pages 215-233, Springer.
    • Handle: RePEc:spr:stcchp:978-3-540-79832-3_12
    DOI: 10.1007/978-3-540-79832-3_12
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    Cited by:

    1. Asha Sadanand, 2019. "Ideal Reactive Equilibrium," Games, MDPI, vol. 10(2), pages 1-18, April.

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