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Published 2004 | Draft
Book Section - Chapter Open

Thinking about Attention in Games: Backward and Forward Induction

Abstract

Behavioral economics improves economic analysis by using psychological regularity to suggest limits on rationality and self-interest (e.g. Camerer and Loewenstein 2003). Expressing these regularities in formal terms permits productive theorizing, suggests new experiments, can contribute to psychology, and can be used to shape economic policies which make normal people better off.

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© 2004 Oxford University Press.

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