We apply the recurrent reinforcement learning method of Moody, Wu, Liao, and Saffell (1998) in the context of the strategic asset allocation computed for sample data from US, UK, Germany, and Japan. It is found that the optimal asset allocation deviates substantially from the fixed-mix rule....

We use adaptive models to understand the dynamics that lead to efficient and fair outcomes in a repeated Battle of the Sexes game. Human subjects appear to easily recognize the possibility of a coordinated alternation of actions as a mean to generate an efficient and fair outcome. Yet such...