Backward induction is a widely accepted principle for predicting behavior in sequential games. In the classic example of the "centipede game'', however, players frequently violate this principle. An alternative is a dynamic level-k model, where players choose a rule from a rule hierarchy. The...

We consider a supply chain with a single supplier and two retailers. The retailers choose their orders strategically and if their orders exceed the supplier's capacity, quantities are allocated proportionally to the orders. We experimentally study the capacity allocation game using subjects...

One's own emotions may influence someone else's behavior in a social interaction. If one believes this, s/he has an incentive to game emotions-to strategically modify the expression of a current emotional state-in an attempt to influence her/his counterpart. In a series of three experiments,...