A subject brackets two decisions if she "choose[s] an option in each case without full regard to the other." Although in most situations such behavior is unlikely to be optimal, it is well documented in experiments where subjects make decisions in the absence of strategic considerations. This...

This paper develops a framework for estimating Quantal Response Equilibrium models from experimental data using Bayesian techniques. Bayesian techniques offer some advantages over the more commonly-used maximum likelihood approach: (i) the accuracy of the posterior simulation is limited by...

We run an experiment to compare belief formation and learning under compound risk and under ambiguity at the individual level. We estimate a four-type mixture model assuming that subjects may either follow Bayes Rule or behave according to the multiple priors model of Epstein and Schneider...