An experiment is designed to provide a snapshot of the strategies used by players in a repeated price competition game with a random continuation rule. One hundred pairs of subjects played the game over the Internet, with subjects having a few days to make their decisions in each round....

We advance the measurement of trust in economics in two ways. First, we highlight the importance of clearly identifying the target of trust, particularly for obtaining concordance between attitudinal and behavioral measures of trust. Second, we introduce a novel behavioral measure of (dis)trust,...

We study cooperation in economies of indefinite duration. Participants faced a sequence of prisonerʼs dilemmas with anonymous opponents. We identify and characterize the strategies employed at the individual level. We report that (i) grim trigger does not describe well individual play and there...

We study both theoretically and experimentally the set of Nash equilibria of a classical one-dimensional election game with two candidates. These candidates are interested in power and ideology, but their weights on these two motives are not necessarily identical. Apart from obtaining the well...

In empirical analyses of games, preferences and beliefs are typically treated as independent. However, if beliefs and preferences interact, this may have implications for the interpretation of observed behavior. Our sequential social dilemma experiment allows us to separate different interaction...

We study both theoretically and experimentally the set of Nash equilibria of a classical one-dimensional election game with two candidates. These candidates are interested in power and ideology, but their weights on these two motives are not necessarily identical. Apart from obtaining the well...

The study of coalition formation under uncertainty poses subtle questions regarding the appropriate definition of the core. In this paper a new core concept, the interim sequential core (ISC), is proposed as a solution concept to transferable utility games with uncertainty when binding...

Correlation of players' actions may evolve in the common course of the play of a repeated game with perfect monitoring (“online correlation”). In this paper we study the concealment of such correlation from a boundedly rational player. We show that “strong” players, i.e., players whose...

We study a stochastic version of Fudenberg–Tirole's preemption game. Two firms contemplate entering a new market with stochastic demand. Firms differ in sunk costs of entry. If the demand process has no upward jumps, the low cost firm enters first, and the high cost firm follows. If leader's...

This paper examines a dynamic process of unilateral and joint deviations of agents and the resulting stochastic evolution of social conventions. Our model unifies stochastic stability analysis in static settings, including normal form games, network formation games, and simple exchange...