TI-games I: An Exploration of Type Indeterminacy In Strategic Decision-Making - Physics > Physics and SocietyReport as inadecuate




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Abstract: The Type Indeterminacy model is a theoretical framework that formalizes theconstructive preference perspective suggested by Kahneman and Tversky. In thispaper we explore an extention of the TI-model from simple to strategicdecision-making. A 2X2 game is investigated. We first show that in a one-shotsimultaneaous move setting the TI-model is equivalent to a standard incompleteinformation model. We then let the game be preceded by a cheap-talk promiseexchange game. We show in an example that in the TI-model the promise stage canhave impact on next following behavior when the standard classical modelpredicts no impact whatsoever. The TI approach differs from other behavioralapproaches in identifying the source of the effect of cheap-talk promises inthe intrinsic indeterminacy of the players- type.



Author: Jerome Busemeyer, A. Lambert-Mogiliansky

Source: https://arxiv.org/







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