Artikel
A game-free microfoundation of mutual optimism
One of the most widely accepted explanations for why wars occur despite its Pareto-suboptimality is mutual optimism: if both sides expect to gain a lot by fighting, war becomes inevitable. The literature on mutual optimism typically assumes mutually optimistic beliefs and shows that, under such an assumption, war may occur despite its Pareto-suboptimality. In a war-peace model, we show that, if players neglect the correlation between other players' actions and their types-a well-established concept in economics-then players' expected payoffs from war increase relative to conventional informational sophistication predictions, hence providing a microfoundation of mutual optimism.
- Language
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Englisch
- Bibliographic citation
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Journal: Games ; ISSN: 2073-4336 ; Volume: 10 ; Year: 2019 ; Issue: 4 ; Pages: 1-14 ; Basel: MDPI
- Classification
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Wirtschaft
- Subject
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correlation neglect
incentives to go to war
information
mutual optimism
- Event
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Geistige Schöpfung
- (who)
-
Serena, Marco
- Event
-
Veröffentlichung
- (who)
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MDPI
- (where)
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Basel
- (when)
-
2019
- DOI
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doi:10.3390/g10040037
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Serena, Marco
- MDPI
Time of origin
- 2019
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