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An Exploration of Type Indeterminacy in Strategic Decision-making

Author

Listed:
  • Jérôme Busemeyer

    (Indiana University - Indiana University [Bloomington] - Indiana University System)

  • Ariane Lambert-Mogiliansky

    (PJSE - Paris-Jourdan Sciences Economiques - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

In this paper we explore an extension of the Type Indeterminacy model of decision-making to strategic decision-making. A 2×2 game is investigated. We first show that in a one-shot simultaneous move setting the TI-model is equivalent to the standard Bayes-Harsanyi model. We then let the game be preceded by a cheap-talk promise game. We show in an example that in the TI-model the promise stage can have an impact on the next following behavior when the standard Bayes-Harsanyi model predicts no impact whatsoever. The TI approach differs from other behavioral approaches in identifying the source of the effect of cheap-talk promises in the intrinsic indeterminacy of the players' type.

Suggested Citation

  • Jérôme Busemeyer & Ariane Lambert-Mogiliansky, 2009. "An Exploration of Type Indeterminacy in Strategic Decision-making," PSE-Ecole d'économie de Paris (Postprint) halshs-00754784, HAL.
    • Handle: RePEc:hal:pseptp:halshs-00754784
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    Cited by:

    1. Ariane Lambert-Mogiliansky & Jerome Busemeyer, 2012. "Quantum Type Indeterminacy in Dynamic Decision-Making: Self-Control through Identity Management," Games, MDPI, vol. 3(2), pages 1-22, May.
    2. Ariane Lambert-Mogiliansky, 2010. "Endogenous preferences in games with type indeterminate players," Working Papers halshs-00564895, HAL.

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