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Sequential Cursed Equilibrium

2022/12/12 by Shani Cohen, Cohen, Shani, Shengwu Li +1
Decision Sciences · Social Sciences · Economics, Econometrics and Finance · #Game Theory and Applications #Experimental Behavioral Economics Studies #Economic theories and models

paper · pdf · doi:10.48550/arxiv.2212.06025

Abstract

We propose an extensive-form solution concept, with players that neglect information from hypothetical events, but make inferences from observed events. Our concept modifies cursed equilibrium (Eyster and Rabin, 2005), and allows that players can be 'cursed about' endogenous information.

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