We study the Fictitious Play process with bounded and unbounded recall in pure coordination games for which failing to coordinate yields a payoff of zero for both players. It is shown that every Fictitious Play player with bounded recall may fail to coordinate against his own type. On the other...

Human judgments are systematically affected by various biases and distortions. The main goal of our study is to analyze the effects of five well-documented behavioral biases-namely, the disposition effect, herd behavior, availability heuristic, gambler's fallacy and hot hand fallacy-on the...

Human judgments are systematically affected by various biases and distortions. The main goal of our study is to analyze the effects of five well-documented behavioral biases — namely, the disposition effect, herd behavior, availability heuristic, gambler's fallacy and hot hand fallacy — on...