Does Game Theory Generate Testable Predictions?

Lynne Kiesling To answer my own question, I’d say it depends on the model, and the stringency of the assumptions, and whether or not the model’s (and the economist’s) focus is on understanding human action, or on constructing an elegant, self-contained model. I agree with Tyler Cowen’s list of ways that economics research can derive … More Does Game Theory Generate Testable Predictions?More Does Game Theory Generate Testable Predictions?

A Chilly, Expensive Winter

Lynne Kiesling No surprise … the effects of Katrina and Rita on domestic natural gas supplies will lead to higher heating bills this winter, particularly for those who heat with natural gas (and secondarily for those who heat with natural-gas-generated electricity). These shocks exacerbate a five-year trend in increasing natural gas prices, for reasons that … More A Chilly, Expensive WinterMore A Chilly, Expensive Winter