Some recent theoretical approaches to the question of how players might converge over time to a Nash equilibrium have assumed that the players update their beliefs about other players via Bayes' Rule. Jordan has shown in a Bayesian model of this kind that play will (theoretically) always...

We describe an experiment based on a repeated two-person game of incomplete information designed so that Jordan's Bayesian model of learning in games and the best response model make completely opposite predictions. Econometric analysis of the experimental data, using the maximum likelihood...

We present a hidden Markov model of discrete strategic heterogeneity and learning in first price independent private values auctions. The model includes three latent bidding rules: constant absolute mark-up, constant percentage mark-up, and strategic best response. Rule switching probabilities...