As documented in the dynamics and outcomes, agents learn to attach meaning to a priori meaningless messages. For the common interest game, Game 1, this chapter observe the efficient separating outcome, although the learning process is gradual. For the partial common interest game, Game 2, the...

This paper provides experimental evidence on forward induction as a refinement criterion. In the basic extensive form, one of the two players chooses to play a battle-of-the-sexes game or to receive a certain payoff. According to forward induction, choosing to play the game is a signal about...