This paper gives a definition of adaptive learning for extensive form games and provides sufficient conditions for convergence points of adaptive learning sequences to be sequential equilibria.

We analyze the effects of simple stylized economic policy rules, or stabilization principles, when fluctuations in economic activity are created endogenously by self_fulfilling volatile expectations. We study a simple monetary competitive model with intertemporally optimizing agents and a...

A Nash equilibrium can be interpreted as a common theory about the players' actions. It is required that the theory is consistent with each player choosing an optimal response to the theory. It is usually required that the theory takes the form of a combination of probability measures on...

It is shown that a nominal rigidity may work as a natural mechanism for rational expectations endogenous fluctuations. By a nominal rigidity is meant that some nominal price, here the nominal wage rate, does not adjust within each short period to equate supply and demand (of labor), but adjusts...

We formulate an evolutionary learning process with trembles for static games of incomplete information. For many games, if the amount of trembling is small, play will be in accordance with the games' (strict) Bayesian equilibria most of the time supporting the notion of Bayesian equilibrium....

We investigate how imperfect competition affects the occurrence and the properties of endogenous, rational expectations business cycles in an overlapping generations model with constant returns to scale in production. The model has explicit product and labor markets all characterized by...

We report new results on a slightly generalized version of the classical learning process for games proposed by Brown (1951), and further analyzed by Robinson (1951), Miyasawa (1961) and Shapley (1964). the learning process rests on an exogenous prior distribution over strategies - a mixed...

Consider a labor market where the parties are able to write contracts contingent on the state of demand and productivity. If it is realistically assumed that the workers differ wrt. their reservation wages, then it becomes a natural presumption that firms on the market will offer several...

In a private ownership, production economy we show that under a smoothness assumption on production sets, an allocation involving unemployment and voluntary trades is always Pareto dominated by another attainable allocation where all the unemployed work (more).

The Choquet integral is an integral part of recent advances in decision theory involving non-additive measures. In this article we present two new axiomatic characterizations of this functional.