Over the course of a repeated game, players often exhibit learning in selecting their best response. Research in economics and marketing has identified two key types of learning rules: belief and reinforcement. It has been shown that players use either one of these learning rules or a...

This paper aspires to fill a conspicuous gap in the literature regarding learning in games—the absence of empirical verification of learning rules involving pattern recognition. Weighted fictitious play is extended to detect two-period patterns in opponentsʼ behavior and to comply with the...

Experimental evidence from dictator games and simple choice situations indicates concerns for fairness and social welfare in human decision making. At the same time, models of inequality averse agents fail to explain the experimental data of individuals who reduce their payoff below a fair split...

Reverse auctions are fast becoming the standard for many procurement activities. In the past, the majority of such auctions have been solely price based, but increasingly attributes other than price affect the auction outcome. Specifically, the buyer uses a scoring function to compare bids and...

We experimentally test the hypothesis that players' valuations of a game coincide with their Nash equilibrium earnings. Our results offer significantly less support for this hypothesis than for the prediction of dominant strategy play.

This paper addresses the question of whether neural networks, a realistic cognitive model of the human information processing, can learn to backward induce in a two stage game with a unique subgame-perfect Nash Equilibrium. The result that the neural networks only learn a heuristic that...

The trust-building process is basic to social science. We investigate it in a laboratory setting using a novel multistage trust game where social gains are achieved if players trust each other in each stage. In each stage, also, players have an opportunity to appropriate these gains or be...

Many emerging technologies exhibit path-dependent demands driven by positive network feedback. Such network effects profoundly impact marketing strategists' thinking in today's network economy. However, the significant network externalities expected by many people often fail to materialize in...