13. Economic agents (for example, consumers or firms) often do things that at first glance seem to...

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13. Economic agents (for example, consumers or firms) often do things that at first glance seem to be inconsistent with their self-interest. People tip at restaurants when they are on vacation, even if they have no intention of returning to the same place. Some firms install costly pollution abatement equipment voluntarily. How can these deviations from Nash predictions be explained?

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Microeconomics

ISBN: 9781292214351

2nd Global Edition

Authors: Daron Acemoglu, David Laibson, John List

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