In 1982, Milgrom and Stokey proved a remarkable “Groucho Marx theorem”: If rationality is common knowledge, risk-averse players should not make speculative bets with one another (unless they have hedging motives). Of course, speculation goe…Kovalchik, Stephanie, Colin F. Camerer, David M. Grether, Charles R. Plott, and John M. Allman, “Aging and Decision Making: A Broad Comparative Study of Decision Behavior in Neurologically Healthy Elderly and Young Individuals,” Journal of …
Nancy Stokey
economist · 2 mentions across 1 reading
In this course
Nancy Stokey is an economist known for foundational work in game theory and information economics, particularly the Milgrom-Stokey "Groucho Marx theorem" demonstrating that rational actors with common knowledge shouldn't engage in speculative trade. In the course readings, her theorem appears as a key conceptual tool for interrogating the gap between economic rationality and actual market behavior, especially when examining how AI systems might model or diverge from human decision-making under uncertainty. This work grounds debates about whether machine learning systems replicate human irrationality or enforce mathematical ideals that contradict observable market dynamics.
Mentioned in 1 reading
Appears alongside
People mentioned in the same passages — sorted by co-occurrence weight.
Paul Milgrom 2Amnon Rapoport 1Barry O'Neill 1Barry Sopher 1Bernhardt Lieberman 1Charles R. Plott 1Colin F. Camerer 1David M. Grether 1David M. Messick 1Dilip Mookerjee 1H. Solomon 1J. H. Criswell 1Jack Ochs 1John M. Allman 1Mario Livio 1Patrick Suppes 1Richard D. McKelvey 1Rosemarie Nagel 1Stephanie Kovalchik 1Thomas R. Palfrey 1Wilfred Amaldoss 1Alvin E. Gilat 1Doron Sonsino 1Erik Eyster 1Groucho Marx 1Ido Erev 1Matthew Rabin 1Yosef Sovik 1