Insights from experiments with duopoly games : rational incremental decision-making

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Author(s)

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

Related Research Unit(s)

Detail(s)

Original languageEnglish
Pages (from-to)1328-1351
Journal / PublicationPublic Management Review
Volume19
Issue number9
Online published14 Feb 2017
Publication statusPublished - 21 Oct 2017

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.

Research Area(s)

  • experiment, incrementalism, rational decision-making, replication, Signalling game

Citation Format(s)

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: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review