How burning money requires a lot of rationality to be effective

DOI10.1016/J.ECONLET.2011.11.044zbMath1243.91082OpenAlexW2063166020MaRDI QIDQ433732

Christian Seel, Philipp C. Wichardt

Publication date: 6 July 2012

Published in: Economics Letters (Search for Journal in Brave)

Full work available at URL: https://cris.maastrichtuniversity.nl/ws/files/64725864/Seel_2012_How_burning_money_requires.pdf

zbMATH Keywords

bounded rationalityforward inductionburning moneyvaluation equilibrium

Mathematics Subject Classification ID

Macroeconomic theory (monetary models, models of taxation) (91B64) Rationality and learning in game theory (91A26) Special types of economic markets (including Cournot, Bertrand) (91B54)

Cites Work

• Existence of valuation equilibria when equilibrium strategies cannot differentiate between equal ties
• Finite automata play the repeated prisoner's dilemma
• Stable equilibria and forward induction
• Signaling future actions and the potential for sacrifice
• Burning money and (pseudo) first-mover advantages: an experimental study on forward induction

This page was built for publication: How burning money requires a lot of rationality to be effective