Sequential Cursed Equilibrium
American Economic Review · 2026 · Volume 116 · Issue 3
Abstract
We propose an extensive-form solution concept, with players who neglect information from hypothetical events but make inferences from observed events. Our concept modifies cursed equilibrium (Eyster and Rabin 2005) and allows that players can be cursed about endogenous information.
Keywords
Stochastic and Dynamic Games, Evolutionary Games, Repeated Games, Auctions, Social Choice, Clubs, Committees, Associations, Criteria for Decision-Making under Risk and Uncertainty, Search, Learning, Information and Knowledge, Communication, Belief, Unawareness, Micro-Based Behavioral Economics: Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
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