Dr Will Ball @wpball.com · Feb 4 You can demonstrate 'feedback' mechanisms by adding a time element to a DAG. In this example E(time 0) has an effect on C(time 1), which also has an effect on E(time 1)
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Good point about time-indexed DAGs; they do handle feedback that unfolds over discrete time points. But strategic interactions and equilibrium relations involve feedback loops that are effectively simultaneous. Deterrence is a classic example...