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Award ID contains: 2243268

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  1. ; ; (, American Economic Review)
    This paper develops a framework to extend the strategic form analysis of cursed equilibrium (CE) developed by Eyster and Rabin (2005) to multistage games. The approach uses behavioral strategies rather than normal form mixed strategies and imposes sequential rationality. We define and characterize properties of cursed sequential equilibrium (CSE) and apply it to four canonical economic applications: signaling games, reputation building, durable goods monopoly, and the dirty faces game. These applications illustrate various implications of CSE, show how and why it differs from sequential equilibrium and CE, and provide evidence from laboratory experiments that support the empirical relevance of CSE. (JEL C72, C73, D42, D82, D83) 
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    Free, publicly-accessible full text available August 1, 2026
  2. ; ; (, Experimental Economics)
    Determining an individual’s strategic reasoning capability based solely on choice data is a complex task. This complexity arises because sophisticated players might have non-equilibrium beliefs about others, leading to non-equilibrium actions. In our study, we pair human participants with computer players known to be fully rational. This use of robot players allows us to disentangle limited reasoning capacity from belief formation and social biases. Our results show that, when paired with robots, subjects consistently demonstrate higher levels of rationality, compared to when paired with human players. Furthermore, players’ rationality levels are relatively stable across games when paired with robot players, even though those with intermediate rationality levels exhibit inconsistency across games. Leveraging our experimental design, we identify and document potential causes of this inconsistency. 
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    Free, publicly-accessible full text available May 7, 2026
  3. ; (, Journal of Economic Theory)
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