Advances In Understanding Strategic Behaviour: Game Theory, Experiments And Bounded Rationality


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Advances in Understanding Strategic Behaviour Game Theory, Experiments and Bounded Rationality Edited by Steffen Huck Advances in Understanding Strategic Behaviour This page intentionally left blank Advances in Understanding Strategic Behaviour Game Theory, Experiments and Bounded Rationality .. Essays in Honour of Werner Guth Edited by Steffen Huck Selection, editorial matter and Chapter 16 © Steffen Huck 2004 Chapters 115 © the contributors 2004 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No paragraph of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency, 90 Tottenham Court Road, London W1T 4LP. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patents Act 1988. First published 2004 by PALGRAVE MACMILLAN Houndmills, Basingstoke, Hampshire RG21 6XS and 175 Fifth Avenue, New York, N.Y. 10010 Companies and representatives throughout the world PALGRAVE MACMILLAN is the global academic imprint of the Palgrave Macmillan division of St. Martin^s Press, LLC and of Palgrave Macmillan Ltd. Macmillan is a registered trademark in the United States, United Kingdom and other countries. Palgrave is a registered trademark in the European Union and other countries. ISBN 1403941521 hardback ISBN 140394167X paperback This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. A catalogue record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Advances in understanding strategic behaviour:game theory, experiments, and bounded rationality/edited by Steffen Huck. p. cm. Includes bibliographical references and index. ISBN 1403941521 “ ISBN 140394167X (pbk.) 1. Game theory. 2. Decision making. 3. Econometric models. I. Güth, Werner, 1944 II. Huck, Steffen, 1968 HB144.A38 2004 519.3“dc22 2004056082 10 9 8 7 6 5 4 3 2 1 13 12 11 10 09 08 07 06 05 04 Printed and bound in Great Britain by Antony Rowe Ltd, Chippenham and Eastbourne Contents List of Figures vii List of Tables ix Preface xi Acknowledgements xiv List of Contributors xv 1 Boundedly Rational Qualitative Reasoning on Comparative Statics Reinhard Selten 1 2 Complexity Constraints and Adaptive Learning: An Example Tilman Börgers and Antonio J. Morales 3 Vengefulness Evolves in Small Groups Daniel Friedman and Nirvikar Singh 28 4 Network Formation and Co-ordination Games Siegfried K. Berninghaus and Bodo Vogt 55 5 Specific Skills, Imperfect Information and Job Rationing Helmut Bester 73 6 Testing Game Theory Jörgen W. Weibull 85 7 A Dialogue Concerning the Nature of Rationality Hartmut Kliemt and Axel Ockenfels 105 8 Behavioural Game Theory: Thinking, Learning and Teaching Colin F. Camerer, Teck-Hua Ho and Juin Kuan Chong 120 9 Double Auction Markets with Stochastic Supply and Demand Schedules: Call Markets and Continuous Auction Trading Mechanisms John H. Kagel v 9 181 vi Contents 10 11 12 Multistage Sealed-bid k-Double-Auctions: An Experimental Study o
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