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 …
Paul Milgrom
economist · 2 mentions across 1 reading
In this course
Paul Milgrom is an economic theorist best known for the "Groucho Marx theorem" (proved with Stokey in 1982), which demonstrates that rational agents with common knowledge should not engage in speculative trade—a result central to understanding the epistemic foundations of market behavior. The course readings use Milgrom's work to anchor debates about rationality, information asymmetry, and the gap between theoretical economic models and actual human behavior in speculative markets.
Mentioned in 1 reading
Appears alongside
People mentioned in the same passages — sorted by co-occurrence weight.
Nancy Stokey 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