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A theory of deception

Jehiel, Philippe; Ettinger, David (2010), A theory of deception, American economic journal : Microeconomics, 2, 1, p. 1-20. http://dx.doi.org/10.1257/mic.2.1.1

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Type
Article accepté pour publication ou publié
Date
2010
Journal name
American economic journal : Microeconomics
Volume
2
Number
1
Publisher
American Economic Association
Pages
1-20
Publication identifier
http://dx.doi.org/10.1257/mic.2.1.1
Metadata
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Author(s)
Jehiel, Philippe
Ettinger, David
Abstract (EN)
This paper proposes an equilibrium approach to belief manipulation and deception in which agents only have coarse knowledge of their opponent's strategy. Equilibrium requires the coarse knowledge available to agents to be correct, and the inferences and optimizations to be made on the basis of the simplest theories compatible with the available knowledge. The approach can be viewed as formalizing into a game theoretic setting a well documented bias in social psychology, the fundamental attribution error. It is applied to a bargaining problem, thereby revealing a deceptive tactic that is hard to explain in the full rationality paradigm.
Subjects / Keywords
belief manipulation; deception; Bargaining Theory
JEL
C78 - Bargaining Theory; Matching Theory
D83 - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
D84 - Expectations; Speculations

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