In this note we shall discuss a concept that – despite its prominence in both Hume (1739) and Smith (1759), its obvious relevance for social behavior, and its not so infrequent use in colloquial language – has never gained a foothold in economic theory: the concept of empathy. Specifically,...

Discussing the literatures on behavioral economics, bounded rationality, and experimental economics as they apply to firm behavior in markets. Mark Armstrong & Steffen Huck, University College London

Discussing the literatures on behavioral economics, bounded rationality, and experimental economics as they apply to firm behavior in markets. Mark Armstrong & Steffen Huck, University College London

In this article we study a very simple trial and error learning process in the context of a Cournot oligopoly. Without any knowledge of the payoff functions players increase, respectively decrease, their quantity as long as this leads to higher profits. We show that despite the absence of any...

Imitation of the successful choices of others is a simple and superficially attractive learning rule. It has been shown to be an important driving force for the strategic behavior of (young) adults. In this study we examine whether imitation is prevalent in the behavior of children aged between...