How burning money requires a lot of rationality to be effective

C. Seel; P. Wichardt

doi:10.1016/j.econlet.2011.11.044

How burning money requires a lot of rationality to be effective

C. Seel^*, P. Wichardt

^*Corresponding author for this work

Microeconomics & Public Economics

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Abstract

This paper proposes an extension of the valuation equilibrium concept (Jehiel and Samet, 2007), which partly endogenises the underlying grouping of actions. The effect on equilibrium predictions is illustrated in a burning money game.

Original language	English
Pages (from-to)	111-113
Number of pages	3
Journal	Economics Letters
Volume	115
Issue number	1
DOIs	https://doi.org/10.1016/j.econlet.2011.11.044
Publication status	Published - Apr 2012

Keywords

Bounded rationality
Burning money
Forward induction
Valuation equilibrium
INDUCTION

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title = "How burning money requires a lot of rationality to be effective",

abstract = "This paper proposes an extension of the valuation equilibrium concept (Jehiel and Samet, 2007), which partly endogenises the underlying grouping of actions. The effect on equilibrium predictions is illustrated in a burning money game. ",

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How burning money requires a lot of rationality to be effective

Abstract

Keywords

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