Finally, the ultimate goal of the laboratory honing of simple models is to explain behavior in the economy. Models of iterated thinking could prove useful in thinking about asset markets, speculation and betting, contract structure, and oth…Schelling, Thomas, The Strategy of Conflict (Cambridge, MA: Harvard University Press, 1960).
Selten, Reinhard, “Features of Experimentally Observed Bounded Rationality,” European Economic Review, XLII (1998), 413–436.
Sonsino, Doron, Ido Er…
Ariel Rubinstein
economist · 2 mentions across 1 reading
In this course
Rubinstein appears primarily as a theorist of bounded rationality and iterated cognition in economic modeling, contributing to frameworks that move beyond perfect rationality assumptions. The readings invoke his work to support arguments about how simplified models of recursive thinking—what agents think others think—can illuminate real-world economic behavior like speculation and market dynamics. His theoretical apparatus becomes useful for understanding how strategic interaction operates when agents have finite computational capacity rather than perfect information.
Mentioned in 1 reading
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