Sequential Cursed Equilibrium
Theoretical Economics
2025-07-29 v5
Abstract
We propose an extensive-form solution concept, with players that 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
Cite
@article{arxiv.2212.06025,
title = {Sequential Cursed Equilibrium},
author = {Shani Cohen and Shengwu Li},
journal= {arXiv preprint arXiv:2212.06025},
year = {2025}
}
Comments
Updated: Empirical parameter estimates, improved exposition