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Regret in Games (joint work with Pierpaolo Battigalli & Senran Lin)
We explore how regret influences strategic interaction and risky choice. Regret is captured by the payoff gap between what a player actually gets and what he believes he would have gotten had he chosen differently. Ex-post beliefs are critical to that evaluation, and the modeling therefore draws on tools from psychological game theory. Our analysis uncovers several non-standard implications. From a technical viewpoint, predictions depend in novel ways on information structure across end-nodes, assumptions regarding the precise nature of chance moves and mixed strategies, and the order in which play proceeds. From an applied viewpoint, regret can have powerful impact in a variety of economic settings including education, delegation, gambling, provision of public goods, and market entry.
Please sign up for meetings here: docs.google.com/spreadsheets/d/1G0KdCfEkG4LYBuDSCLxyGRSEULv3_smLEEQMofG4X5U/edit#gid=0
Date:
13 November 2020, 14:15
Venue:
Held on Zoom
Speaker:
Martin Dufwenberg (University of Arizona)
Organising department:
Department of Economics
Part of:
Nuffield Economic Theory Seminar
Booking required?:
Not required
Audience:
Members of the University only
Editor:
Melis Clark
