Belief-updating rule and sequential reciprocity

B-Tier
Journal: Games and Economic Behavior
Year: 2019
Volume: 113
Issue: C
Pages: 770-780

Authors (2)

Jiang, Lianjie (not in RePEc) Wu, Jiabin (University of Oregon)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We revisit Dufwenberg and Kirchsteiger's (2004) model of reciprocity in sequential games. One important assumption they make is that players' perception of their opponents' kindness depends on their most updated beliefs at their decision nodes along the game. We argue that this is not always the case. We propose a modified belief-updating rule that categorizes beliefs by whether perceived kindness is calculated using their most updated forms. We use a simple example to demonstrate how equilibrium predictions differ for the new rule compared to the original one.

Technical Details

RePEc Handle
repec:eee:gamebe:v:113:y:2019:i:c:p:770-780
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29