Behavioral Game Theory

• Other Authors: Golman, Russell (Editor)
• Format: Electronic Book Chapter
• Language: English
• Published: Basel, Switzerland MDPI - Multidisciplinary Digital Publishing Institute 2021
• Subjects: Economics, finance, business & management; social preferences; third-party punishment; cognitive reflection ability; intuition; reflection; dictator game; ultimatum game; potential games; social welfare; risk dominance; payoff dominance; innovation diffusion; externalities; decomposition; strategic communication; two-stage games; pareto efficient equilibria; belief formation; learning; behavioral game theory; case-based decision theory; level-k reasoning; guessing game; cognitive load; endogenous depth of reasoning; strategic thinking; n/a
• Online Access: DOAB: download the publication; DOAB: description of the publication

How do interacting decision-makers make strategic choices? If they're rational and can somehow predict each other's behavior, they may find themselves in a Nash equilibrium. However, humans display pervasive and systematic departures from rationality. They often do not conform to the predi...