Abstract
In two-outcome strictly competitive games, equilibrium mixed strategies do not depend on ultimate prizes. Dixit and Skeath [Games of Strategy (1999) Norton, New York] find this 'counter-intuitive'. We show this invariance comes from reduction, not independence; and provide conditions for 'intuitive' comparative statics under recursive expected utility.
Original language | English |
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Pages (from-to) | 275-286 |
Number of pages | 12 |
Journal | Economics Letters |
Volume | 73 |
Issue number | 3 |
DOIs | |
Publication status | Published - Dec 2001 |
Externally published | Yes |