How burning money requires a lot of rationality to be effective

DOI10.1016/J.ECONLET.2011.11.044MaRDI QIDQ433732zbMATH OpenOpenAlexFDO

Authors Christian Seel, Philipp C. Wichardt

Publication date 6 July 2012

Published in Economics Letters (Search for Journal in Brave)

Full work available at URL https://cris.maastrichtuniversity.nl/ws/files/64725864/Seel_2012_How_burning_money_requires.pdf

zbMATH Keywords

bounded rationalityforward inductionburning moneyvaluation equilibrium

Mathematics Subject Classification ID

Macroeconomic theory (monetary models, models of taxation) (91B64) Special types of economic markets (including Cournot, Bertrand) (91B54) Rationality and learning in game theory (91A26)

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Cites work

• Burning money and (pseudo) first-mover advantages: an experimental study on forward induction
• Existence of valuation equilibria when equilibrium strategies cannot differentiate between equal ties
• Finite automata play the repeated prisoner's dilemma
• Signaling future actions and the potential for sacrifice
• Stable equilibria and forward induction

Cited in

(2)

• Money burning in the theory of delegation
• On the strategic value of `shooting yourself in the foot': an experimental study of burning money

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