Analogy-Based Expectation Equilibrium and Related Concepts:Theory, Applications, and Beyond
Pre-print, Working paper: A unified definition of analogy-based expectation equilibrium (ABEE) for strategic environments involving multiple stages and private information is presented. Various alternative interpretations of the concept are proposed as well as a discussion of how to use ABEE in practice. A variety of applications including two new ones related to speculative trading and personnel economics is reviewed. A discussion of a number of alternative equilibrium concepts follows emphasizing the links and differences with ABEE. Finally, a discussion of possible next steps in particular related to the endogeneization of analogy partitions is proposed.
Keywords
- Analogy-Based Expectation
- Bounded rationality
- Limited learning
Internal reference
- PSE Working Papers n°2022-21
Pages
- 107 p.
URL of the HAL notice
Version
- 1