Supplement to a Strategic Model of Magical Thinking: Axioms and Analysis
6 Pages Posted: 24 Oct 2014
Date Written: September 26, 2014
We establish that in the Prisoners' Dilemma, the model of Daley and Sadowski (2014) is logically distinct from three models that employ well-known forms of other-regarding preferences: altruism (Ledyard, 1995; Levine, 1998), inequity aversion (Fehr and Schmidt, 1999), and reciprocity (Rabin, 1993).
The paper "A Strategic Model of Magical Thinking: Axioms and Analysis" to which this supplement applies is available at the following URL: http://ssrn.com/abstract=2507377
Keywords: Prisoners' dilemma, coordination games, magical thinking, cooperation
JEL Classification: C7, D8
Suggested Citation: Suggested Citation