Modelling equilibrium play as governed by analogy and limited foresight
PC Wichardt - Games and Economic Behavior, 2010 - Elsevier
This paper proposes a bounded rationality approach to model equilibrium play in games. It
is based on the observation that decision makers often do not seem to fully distinguish
between different but seemingly similar decisions and tend to treat such similar decisions in
a standardised/habitual way. To capture this, each player's information partition is derived
from a similarity grouping of decisions based on the local structure of the game–equality of
available actions and analogy of locally foreseen subtrees–and possibly refined by …
is based on the observation that decision makers often do not seem to fully distinguish
between different but seemingly similar decisions and tend to treat such similar decisions in
a standardised/habitual way. To capture this, each player's information partition is derived
from a similarity grouping of decisions based on the local structure of the game–equality of
available actions and analogy of locally foreseen subtrees–and possibly refined by …
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