Insights from experiments with duopoly games

rational incremental decision-making

M. Jin Lee, M. Jae Moon, Jungsook Kim

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This study explores rational incremental decision-making, one of the most powerful principles in government decision-making. Although ‘muddling through’ is applicable in many decision-making situations, it has been argued that incremental decisions are rational in some conditions. This study replicates the game experiment using two-person games with the factorial design of uncertainty and risk in Hong Kong and Korea. Findings show that incremental decisions in prior rounds lead to rational results and thereby better rewards, and that uncertainty and risk slow down the process of reaching the Nash equilibrium. The conclusion discusses implications of rational incrementalism.

Original languageEnglish
Pages (from-to)1328-1351
Number of pages24
JournalPublic Management Review
Volume19
Issue number9
DOIs
Publication statusPublished - 2017 Oct 21

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Decision making
Experiments
Duopoly
Incremental
Experiment
Uncertainty
Risk and uncertainty

All Science Journal Classification (ASJC) codes

  • Management Information Systems
  • Management of Technology and Innovation

Cite this

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Insights from experiments with duopoly games : rational incremental decision-making. / Lee, M. Jin; Moon, M. Jae; Kim, Jungsook.

In: Public Management Review, Vol. 19, No. 9, 21.10.2017, p. 1328-1351.

Research output: Contribution to journalArticle

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