Lying for Strategic Advantage: Rational and Boundedly Rational Misrepresentation of Intentions

S-Tier
Journal: American Economic Review
Year: 2003
Volume: 93
Issue: 1
Pages: 133-149

Score contribution per author:

8.073 = (α=2.02 / 1 authors) × 4.0x S-tier

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

Abstract

Starting from an example of the Allies' decision to feint at Calais and attack Normandy on D-Day, this paper models misrepresentation of intentions to competitors or enemies. Allowing for the possibility of bounded strategic rationality and rational players' responses to it yields a sensible account of lying via costless, noiseless messages. In some leading cases, the model has generically unique pure-strategy sequential equilibria, in which rational players exploit boundedly rational players, but are not themselves fooled. In others, the model has generically essentially unique mixed-strategy sequential equilibria, in which rational players' strategies protect all players from exploitation.

Technical Details

RePEc Handle
repec:aea:aecrev:v:93:y:2003:i:1:p:133-149
Journal Field
General
Author Count
1
Added to Database
2026-01-25