We study infinitely repeated games with observable actions, where players have present-biased (so-called beta-delta) preferences. We give a two-step procedure to characterize Strotz-Pollak equilibrium payoffs: compute the continuation payoff set using recursive techniques, and then use this set...

We show that far from capturing a formally new phenomenon, informational herding is really a special case of single-person experimentation ­ and 'bad herds' the typical failure of complete learning. We then analyze the analogous team equilibrium, where individuals maximize the present...