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A Comparison of Cursed Sequential Equilibrium and Sequential Cursed Equilibrium: Different Concepts of Cursedness in Dynamic Games
Cursed Equilibrium of Eyster and Rabin (2005) has been a leading theory for explaining winner's-curse-type behavior in static Bayesian games, but it faces conceptual limitations when applied to dynamic games. Two recent extensions, Cursed Sequential Equilibrium (CSE) by Fong, Lin and Palfrey (2025)
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