Titlebook: Economics in a Changing World; Volume 2: Microecono Beth Allen Book 1996 Palgrave Macmillan, a division of Macmillan Publishers Limited 199

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Suppose Everybody Behaved Like That?ion from his . that heads this chapter. Since things would be bad for everybody if everybody behaved selfishly, selfishness must therefore be irrational. Rousseau (1762) argues similarly in his . when telling the famous stag-hunt tale.. However, Kant (1785) is the most famous pedlar of the fallacy.

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Evolution and Rationality: Some Recent Game-Theoretic Results it is difficult to provide a solid theoretical or empirical justification for Nash equilibrium behaviour. ‘Rationality’, or even ‘common knowledge of rationality’, is not enough to generate such behaviour. Among other things, one also needs to assume that the players coordinate their beliefs about

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Mechanism Design with Incomplete Informationen alternative procedures and the outcomes that result. This chapter describes some of the theoretical progress that has been made in the study of mechanism design when there is incomplete information about the preferences of the individuals. It is expository in nature and is not intended to be a su

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The Determinacy of Equilibria 25 Years Later impact on the style and the substance of economic theorizing. If I had been more energetic I would have verified this impact in the Index of Citations. Yet, whatever the latter says, it is bound to be a considerable underestimate of the impact. Often, the sign of the success of a paper is its being

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Theories of Optimal Capital Structure: A Managerial Discretion Perspectiveerstanding of the capital structure of firms.. This work has produced some important insights but has not yet delivered a fully coherent theory of optimal capital structure. For example, at present we do not understand very well the distinguishing features of debt and equity or why these claims, as

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Empirical Studies of Product Marketsstrial economics started as a distinct field of economics with a series of book-length case studies of particular industries under the impulse of Edward Chamberlin and Edward Mason. The idea was that the profession would learn about imperfectly competitive markets by induction from an accumulation o