Cooperative equilibria can be supported in a repeated game when players use trigger strategies. This paper tests how well trigger strategies explain behavior in two-person experimental games. Reducing payoffs for choices larger than the Cournot level induces smaller average outputs, consistent...

We analyze learning in a two-person simultaneous choice repeated game. Agents form beliefs about their rival's strategies, which they revise as the game progresses. We test this model using data from a series of experiments. We obtain data on subjects' expectations by asking them to predict...

Cooperative equilibria can be supported in a repeated game when players use trigger strategies. This paper tests how well trigger strategies explain behavior in two-person experimental games. Reducing payoffs for choices larger than the Cournot level induces smaller average outputs, behavior...