mechanism or even paying them off on all questions
16
. As far as post-experimental data
analysis is concerned, we have already stated our prejudices: we believe that experi-
ments should be used to find the “best” theory of behavior, best in terms of explanation
and prediction.
14.2 DYNAMIC DECISION MAKING UNDER RISK
17
Much of economic theory assumes a static decision problem: the decision maker takes
a decision; a move by Nature occurs; the decision maker receives a payoff; end of story.
However, in real life most decisions are dynamic: there is a sequence of decisions and
subsequent moves by Nature, and the payoffs could be obtained ...
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