Professionals Play Minimax

摘要: During the last few decades game theory has contributed to a reshaping of important aspects of methodology Economics and other social sciences. In large part this is because language, concepts, techniques noncooperative game have become central many areas discipline. Undoubtedly, studying interaction ideally rational players greatly aids our understanding behavior real individuals, firms agents. Moreover, as Kreps (1991) remarks, "studying former should aim at understanding the latter. The point help economists understand and predict what will happen in economic, political contexts." Theoretical contributions thus feed back empirical analysis. However, testing implications proven extremely difficult in the literature. primary reason that predictions often hinge on properties utility functions values rewards used. Even when are invariant over classes preferences, data on are seldom available natural settings. Moreover, there great difficulty in determining strategy sets measuring individuals� choices, effort levels, and incentive structures they face. As result, even most fundamental predictions game-theoretical models not been supported empirically in real situations yet.