We study a repeated Nash demand game, where bargainers follow a fictitious play procedure after their one-shot decision on demand in the initial period. In the reduced static game they play at the initial period, all the epsilon-equilibria are clustered around the division corresponding to the...

This chapter is a very compressed review of the neoclassical orthodoxy on the nature of rationality on economic theory. It defends the orthodoxy both against the behavioral criticism that it assumes too much and the revisionist view that it assumes too little. In places, especially on the...