蝌蚪网 Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Multidimensional Reasoning in Games: Framework, Equilibrium, and Applications
蝌蚪网 Journal: Microeconomics
(pp. 285–318)
Abstract
We develop a framework for analyzing multidimensional reasoning in strategic interactions, which is motivated by two experimental findings: (i) in games with a large and complex strategy space, players tend to think in terms of strategy characteristics rather than the strategies themselves; (ii) in their strategic deliberation, players consider one characteristic at a time. A multidimensional equilibrium is a vector of characteristics representing a stable mode of behavior: a player does not wish to modify any one characteristic. The concept is applied to several economic interactions, where a vector of characteristics, rather than a distribution of strategies, is identified as stable.Citation
Arad, Ayala, and Ariel Rubinstein. 2019. "Multidimensional Reasoning in Games: Framework, Equilibrium, and Applications." 蝌蚪网 Journal: Microeconomics 11 (3): 285–318. DOI: 10.1257/mic.20170322Additional Materials
JEL Classification
- C72 Noncooperative Games
- D11 Consumer Economics: Theory
- D91 Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making