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 |
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Pages (from-to) | 111-113 |
Number of pages | 3 |
Journal | Economics Letters |
Volume | 115 |
Issue number | 1 |
DOIs | |
Publication status | Published - Apr 2012 |
Keywords
- Bounded rationality
- Burning money
- Forward induction
- Valuation equilibrium
- INDUCTION