{"product_id":"optimal-pricing-against-a-simple-learning-rule-von-christoph-dyllick-brenzinger","title":"Optimal Pricing against a simple learning rule","description":"\u003cp\u003eStudienarbeit aus dem Jahr 2008 im Fachbereich VWL - Wettbewerbstheorie, Wettbewerbspolitik, Note: 2,0, Ruprecht-Karls-Universität Heidelberg, Veranstaltung: Seminar: Behavioral Industrial Organization, Sprache: Deutsch, Abstract: Research conducted and published by sociologists, psychologists as\u003c\/p\u003e\u003cp\u003ewell as experimental microeconomists has repeatedly highlighted that the common assumption of rational individuals in most of the existing literature of game theory is only a rough approximation to reality at best if not doubtful. With full rationality being a cornerstone, the discipline has found itself in a dilemma situation. As early as 1955, Simon had consequently created the term bounded rationality and called for modified model assumptions. However, his call has been largely unheard until 1996. Ernst-Ludwig von Thadden's paper \"Optimal pricing\u003c\/p\u003e\u003cp\u003eagainst a simple learning rule\" was one step on the way for more research focussing on the agents' lack of full rationality.\u003c\/p\u003e\u003cp\u003e\u003c\/p\u003e\u003cp\u003eThis paper intends to provide firstly a short summary of the development of game theory research with a clear focus on bounded rationality. Secondly, it presents the core assumptions and key take-aways of Ernst-Ludwig von Thadden's paper \"Optimal Pricing against a simple learning rule\".\u003c\/p\u003e\u003cp\u003e\u003c\/p\u003e\u003cp\u003eErnst-Ludwig von Thadden prime assumption is a non-strategic\u003c\/p\u003e\u003cp\u003estrategic buyer, in other words a buyer which updates his beliefs according to a simple learning rule. This non-strategic behaviour reflects Simon's call to assume a bounded rationality when modelling the agents' behaviour. Thadden's research shows - derived using a repeated buyer-seller relationship under asymmetric information - that the strategically acting seller can not benefit from this situation in terms of extract a supernormal price. On average, the seller extracts only the buyer's mean utility u.\u003c\/p\u003e\u003cdiv class=\"aw-variant-hidden-subtitle-div\" id=\"aw-variant-subtitle-9783640372249\"\u003e\u003ch3\u003e\u003c\/h3\u003e\u003c\/div\u003e","brand":"Libri","offers":[{"title":"Softcover - 9783640372249","offer_id":39429216862301,"sku":"9783640372249","price":18.95,"currency_code":"EUR","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0940\/0622\/files\/14e4aa10-8410-4f0e-8bc2-f3b4f54b5de0.jpg?v=1777614088","url":"https:\/\/shop.autorenwelt.de\/products\/optimal-pricing-against-a-simple-learning-rule-von-christoph-dyllick-brenzinger","provider":"Autorenwelt Shop","version":"1.0","type":"link"}