The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Apr, 1956, Volume 24, Issue 2
https://doi.org/0012-9682(195604)24:2<158:TDOSCF>2.0.CO;2-1
p. 158-171
Ernest W. Adams, R. Duncan Luce
A basic assumption of the theory of games is that each player correctly perceives the payoff functions of the other players. This assumption seems highly unrealistic, and it is dropped in this paper and replaced by the assumption that each player has a perception of the payoff function of each of the other players; these perceptions may be incorrect. It is shown that this leads to an analogue of characteristic function theory in which each player has a subjective characteristic function which he believes represents the strength of the several coalitions. It is proposed that the coalitions be treated directly as outcomes and that individual preferences among them be ascertained. If the von Neumann utility axioms plus one other are met, then it can be argued that a simple transformation of the resulting utility function is a player's subjective characteristic function. The beginnings of an equilibrium theory are outlined for this more general model; this theory reduces to a known one when there are no misperceptions. The value of this generalized equilibrium theory is severely limited by two strong assumptions which are made.
March 5, 2024
The terms of the Editors of the Econometric Society's three journals end June 30, 2025. We are pleased to announce the incoming Editors and to thank the outgoing Editors for their excellent and continuing service.
Econometrica: Since 2019, Guido Imbens has served as the 14th Editor of Econometrica. On July 1, 2025, Marina Halac will become the Editor.
Quantitative Economics: Stéphane Bonhomme has been the Editor of Quantitative Economics since 2021. His successor will be Bernard Salanié.
Theoretical Economics: The Editor of Theoretical Economics since 2021 has been Simon Board. Taking over for him in July 2025 will be Federico Echenique.
Guido, Stéphane, and Simon have been outstanding Editors. We are grateful to them for the work they have done and will continue to do, and we look forward to further congratulating them next year. We believe Marina, Bernard, and Federico will be outstanding successors and we thank them in advance for their service.
Finally, we are grateful to Larry Samuelson for chairing all three search committees, and we thank the search committee members for their hard and fruitful work:
Econometrica: Christian Dustmann, Lars Hansen, Alessandro Lizzeri, George Mailath, Ariel Pakes, Helene Rey, and Elie Tamer.
QE: Kate Ho, Michael Keane, Felix Kubler, Whitney Newey, and Frank Schorfheide.
TE: Jeff Ely, Johannes Horner, Gilat Levy, Meg Meyer, and Ran Spiegler.
