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The Effects of Time Preferences on Cooperation: Experimental Evidence from Infinitely Repeated Games

American Economic Journal: Microeconomics, 2023
This paper studies the effects of time preferences on cooperation in an infinitely repeated prisoner’s dilemma game experiment. Subjects play repeated games in the lab, all decisions at once, but stage game payoffs are paid over an extended period of ...
Jeongbin Kim
semanticscholar   +1 more source

Cursed Sequential Equilibrium

The American Economic Review, 2023
This paper develops a framework to extend the strategic form analysis of cursed equilibrium (CE) developed by Eyster and Rabin (2005) to multistage games.
Meng-Jhang Fong   +2 more
semanticscholar   +1 more source

The Doors of Perception: Theory and Evidence of Frame-Dependent Rationalizability

American Economic Journal: Microeconomics, 2023
We investigate how strategic behavior is affected by the set of notions (frames) used when thinking about the game. In our games the action set consists of visual objects: each player must privately choose one, trying to match the counterpart’s choice ...
G. Charness, Alessandro Sontuoso
semanticscholar   +1 more source

Bid Caps in Noisy Contests

American Economic Journal: Microeconomics, 2023
This paper studies optimal bid caps in a multiplayer noisy contest in which a higher bid does not guarantee a sure win. The bid cap can be either rigid or flexible. The former imposes outright bidding restrictions on players’ bids, while the latter taxes
Qiang Fu, Zenan Wu, Yuxuan Zhu
semanticscholar   +1 more source

Rational Inattention in the Infield

American Economic Journal: Microeconomics, 2022
This paper provides evidence of rational inattention by experienced professionals in strategic interactions. We add rational inattention to a game of matching pennies with state-dependent payoffs.
Vivek Bhattacharya, Greg Howard
semanticscholar   +1 more source

Backward Induction Reasoning beyond Backward Induction

American Economic Journal: Microeconomics
Backward induction (BI) is only defined for perfect information games, but its logic is also invoked in many concepts for imperfect or incomplete information games.
Emiliano Catonini, Antonio Penta
semanticscholar   +1 more source

Price and Choose

American Economic Journal: Microeconomics
We describe a sequential mechanism that fully implements the set of efficient outcomes in environments with quasi-linear utilities. The mechanism asks agents to take turns in defining prices for each outcome, with a final player choosing an outcome for ...
Federico Echenique, Matías Núñez
semanticscholar   +1 more source

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