The capacity of markets to aggregate information has been conclusively demonstrated but the limitations of that capacity have still not been fully explored. In this paper, we demonstrate the existence of "information traps". These traps appear to be a sort of equilibrium in which information...

Most learning models assume players are adaptive (i.e., they respond only to their own previous experience and ignore others' payoff information) and that behavior is not sensitive to the way in which players are matched. Empirical evidence suggests otherwise. In this paper, we extend our...

Recent experiments have indicated that it is possible to systematically lead subjects to less refined equilibria in signaling games. In this paper, we seek to understand the process by which this occurs using Camerer and Ho's Experience Weighted Attraction (EWA) model of learning in games. We...

We report the results of experiments on economic decisions with two populations, one of healthy elderly individuals (average age 82) and one of younger students (average age 20). We examine confidence, decisions under uncertainty, differences between willingness to pay and willingness to accept...

Neuroeconomics aims to discover mechanisms of economic decision, and express them mathematically, to predict observed choice. While the contents of neuroeconomic models and evidence are obviously different than in traditional economics, (some of the) goals are identical: to explain and predict...