Workshop
Simple unawareness in dynamic psychological games
- Carsten Nielsen (University of Copenhagen, Copenhagen, Denmark)
Abstract
In standard games, players maximize preferences but preferences are usually defined over material outcomes only. Building on dynamic psychological games by Battigalli and Dufwenberg (2009) and dynamic games with unawareness by Heifetz, Meier, and Schipper (2013), the talk would introduce dynamic psychological games with unawareness in which preferences can also be defined over beliefs over others. Such an approach is useful to rationalize persistent and significant deviations from self-interested behavior (be- cause players may also care what others think about them). The talk is based on Nielsen and Sebald (2013).