Limited rationality and the strategic environment: Further theory and experimental evidence

Autor:	Michael Waldman, Kristen B. Cooper, Henry S. Schneider
Rok vydání:	2017
Předmět:	Economics and Econometrics 05 social sciences Stochastic game Rationality Behavioral economics Individual level Complementarity (physics) Experimental research Beauty contest Microeconomics 0502 economics and business Economics Slow convergence 050207 economics Finance 050205 econometrics
Zdroj:	Games and Economic Behavior. 106:188-208
ISSN:	0899-8256
DOI:	10.1016/j.geb.2017.09.014
Popis:	The psychology and behavioral economics literatures show that real world decision making at the individual level is frequently inconsistent with the rational actor model. An important question is therefore the extent to which a proportion of agents who make mistakes affects market level outcomes. Previous theoretical and experimental research showed that market level outcomes are less likely to match the rational actor model in settings characterized by strategic complementarity and more likely in settings characterized by strategic substitutability. We extend this research both theoretically and experimentally by introducing important real world complications – specifically, periodic shocks to the payoff structure and a periodic inflow of inexperienced players. We find that these complications can significantly slow convergence to rational actor equilibrium play, possibly even indefinitely.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::962abd58723dde8178eaf9300073585d https://doi.org/10.1016/j.geb.2017.09.014 Zobrazit plný text záznamu Full Text from ScienceDirect