American Economic Review Vol. 116 No. 3 2026

Sequential Cursed Equilibrium

Shani Cohen¹; Shengwu Li²

¹ Hebrew University (email: ) · ² Harvard University (email: )

Abstract

We propose an extensive-form solution concept, with players who neglect information from hypothetical events but make inferences from observed events. Our concept modifies cursed equilibrium (Eyster and Rabin 2005) and allows that players can be cursed about endogenous information.

DOI

10.1257/aer.20230309

Volume

116

Issue

3

Pages

934-976

Language

en

Sources

openalex crossref

Cite

APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓