We study experimentally whether heterogeneity of behavior in the Centipede game can be interpreted as the result of a learning process of individuals with different preference types (more and less pro-social) and coarse information regarding the opponent's past behavior. We manipulate the...

We study experimentally whether heterogeneity of behavior in the Centipede game can be interpreted as the result of a learning process of individuals with different preference types (more and less pro-social) and coarse information regarding the opponent's past behavior. We manipulate the...

Using a lab experiment, we investigate the real-life performance of envy-free and proportional cake-cutting procedures with respect to fairness and preference manipulation. We nd that envy-free procedures, in particular Selfridge-Conway, are fairer and also are perceived as fairer than their...

This note applies the evolutionary dynamic of Kandori, Mailath, and Rob ( Econometrica 61 (1993), 29-65) to class coordination games that the entire population plays simultaneously. In these games, payoffs and best replies are determined by a symmary statistic of the population strategy profile...

In this paper we analyze the dynamics of an R&D differential game allowing for technological spillovers and sigmoid learning functions of multiproduct oligopolies. We demonstrate how the presence of learning together with spillovers may generate a rich set of outcomes, varying from constant...

Models of learning and experimentation based on two-armed Poisson bandits addressed several important aspects related to strategic and motivational learning, but they are not suitable to study effects that accumulate over time. We propose a new class of models of strategic experimentation which...

We study a dynamic mean-variance portfolio optimization problem under the reinforcement learning framework, where an entropy regularizer is introduced to induce exploration. Due to the time-inconsistency involved in a mean-variance criterion, we aim to learn an equilibrium strategy. Under an...

We propose a distributed randomized policy iteration algorithm for infinite horizon dynamic programming problems for which the control at each stage is m-dimensional. The traditional policy iteration algorithm involves performing a minimization over an m-dimensional constraint set and has a...

We analyze the strategic behavior of firms when demand is determined by a rule of thumb behavior of consumers. We assume consumer dynamics where individual consumers follow simple behavioral decision rules governed by imitation and habit as suggested in consumer research. On this basis, we...

Tuning one's shower in some hotels may turn into a challenging coordination game with imperfect information. The temperature sensitivity increases with the number of agents, making the problem possibly unlearnable. Because there is in practice a finite number of possible tap positions, identical...