Ignorance and Uncertainty

ISBN-13: 9781108434492 / Angielski / Miękka / 2018 / 300 str.

Olivier Compte; Andrew Postlewaite

Opis

This book proposes novel methods to incorporate ignorance and uncertainty into economic modeling without complex mathematics.

Recenzje

'In this brilliant and path-breaking book, Compte and Postlewaite offer a new way of modeling agent reasoning in microeconomic theory, striking a balance between the demands of equilibrium analysis with 'perfect' rationality and the realities of human cognition. They do not focus on a particular anomaly while embracing the rest of the game-theoretical assumptions. Rather, they focus on plausible ways of reasoning for economic agents, allowing a distinction between the agents' and the modeler's world view. In doing so, Compte and Postlewaite provide a new language for modeling bounded rationality.' Itzhak Gilboa, Tel Aviv University and École des hautes études commerciales de Paris

Spis treści

Introduction; Part I. Modeling Challenges: 1. Action space; 2. Ignorance and uncertainty; 3. Observations, perceptions and strategies; 4. Strategies and strategy restrictions; 5. Knowledge and beliefs; Part II. Legends and Myths: 6. Information aggregation; 7. Mechanism design; 8. Surplus extraction; 9. Folk theorems; 10. Comparative statics; Part III. Applications: 11. Auctions; 12. Learning; 13. Reputation; 14. Cooperation; 15. Influence; 16. Information aggregation in markets; 17. Bargaining; 18. Attrition; 19. Reputation; 20. Coordination; 21. Ambiguity and other complexity related aversions; Miscellanea; Index.