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.