Insights from experiments with duopoly games: rational incremental decision-making
通过香港和韩国的两人博弈实验，研究了不确定性及风险下理性增量决策如何带来更优结果，并发现不确定性和风险会延缓达到纳什均衡的过程。
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.