Delayed Agreements and Nonexpected Utility
Chaim Fershtman, Zvi Safra, and Daniel R. Vincent ,
4
( 3 )
Games and Economic Behavior
423-437
November
1991
Abstract

The unexplained occurrence of inefficient delays in reaching agreement is known in the economics literature as the “Hicks paradox.” This paper describes a strategic situation in which players may play a simultaneous move game either before or after a move of Nature. The structure is such that if the players were expected utility maximizers, they would be indifferent over the order of play.

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