In this paper we model an evolutionary process with perpetual random shocks, where individuals sample population-specific strategy and payoff realizations and imitate the most successful behavior. For finite n-player games we prove that in the limit, as the perturbations tend to zero, only...

We report on experimental evidence rationalizing the use of heterogeneous agent models. We provide compelling evidence that subjects in laboratory experiments often behave in ways that depart from the rational choice ideal. Further, these subjects' heuristic approaches often differ from one...