An agent with a misperception may have an evolutionary advantage when others recognize his misperception and its behavioral implications. In such situations evolutionary forces can lead to misperceptions, yielding "irrational behavior," such as the play of strictly dominated strategies. We point...

One approach to the modeling of bounded rationality in strategic environments is based on the dynamics of evolution and learning in games. An entirely different approach has been developed recently by Osborne and Rubinstein (1998). This latter approach is static and equilibrium based, but relies...