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Author

Yanis Varoufakis

Department of Economics, University of Athens, 8 Pesmazoglou Street, Athens 10559, Greece
1 article in our journals

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Research ArticleOpen accessRational Rules of Thumb in Finite Dynamic Games N-person Backward Induction with Inconsistently Aligned Beliefs and Full RationalityYanis VaroufakisRecent work has cast considerable doubt on the plausibility of specific assumptions about how rational agents form out-of-equilibrium beliefs in finite extensive games in which beliefs are induced backwards. The point is that the resulting consistently aligned beliefs are incoherent in view of the counterfactuals they rely on. This study asks: How will the possibility of inconsistently aligned beliefs affect … …American Journal of Applied Sciences, Vol. 2, Issue 13 · 16 Dec 2005 · 8,114 accessesView PDFCite