The present paper proposes a myopic, boundedly rational heuristic for individual decision-making in differential game settings. I demonstrate that this type of behaviour converges to Nash equilibrium in infinitely repeated stage games without a state variable if the stage game is strategically...

Upon moving to Hamburg, Germany, after a couple of years abroad, I noticed that gas prices at the pump varied much more over time than I had been accustomed to in Hungary. Neither did these fluctuations tally well with previous personal experience living in Bavaria for almost two decades. To be...