This paper presents a dynamic model in which agents adjust their decisions in the direction of higher payoffs, subject to random error. This process produces a probability distribution of players' decisions whose evolution over time is determined by the Fokker-Planck equation. The dynamic...

This paper considers a class of models in which rank-based payoffs are sensitive to small amounts of noise in decision making. Examples include auction, price-competition, coordination, and location games. Observed laboratory behavior in these games is often responsive to asymmetric costs...

Every experimentalist will sooner or later come across a situation in which results from initial baseline treatments conform nicely to the Nash equilibrium, but subsequent changes in parameters push the data in ways not predicted by Nash. This may happen when one begins by giving theory its best...