Sets closed under rational behavior were introduced by Basu and Weibull (1991) as subsets of the strategy space that contain all best replies to all strategy profiles in the set. We here consider a more restrictive notion of closure under rational behavior: a subset of the strategy space is...

In (Viossat, 2006, The replicator dynamics does not lead to correlated equilibria, forthcoming in Games and Economic Behavior), it was shown that the replicator dynamics may eliminate all pure strategies used in correlated equilibrium, so that only strategies that do not take part in any...

We construct a dynamic model of two-sided sorting in labor markets with multi-dimensional agent and firm heterogeneity. We apply it to study optimal party structure and the decision of how (de)centralized candidate recruitment should be. Parties are non-unitary actors and compete at the local...

This paper provides two conditions of epistemic robustness, robustness to alternative best replies and robustness to non-best replies, and uses them to characterize variants of curb sets in finite games, including the set of rationalizable strategies.

A product set of pure strategies is a prep set (prep is short for preparation) if it contains at least one best reply to any consistent belief that a player may have about the strategic behavior of his opponents. Minimal prep sets are shown to exists in a class of strategic games satisfying...

The folk theorems for infinitely repeated games with discounting presume that the discount rate between two successive periods is constant. Following the literature on quasi-exponential or hyperbolic discounting, I model the repeated interaction between two or more decision makers in a way that...

We explore the stability of imitation in a 1,200-period experimental Cournot game where subjects do not know the payoff function but see the output quantities and payoffs of each oligopolist after every period. In line with theoretical predictions and previous experimental findings, our...

We study long-run learning in an experimental Cournot game with no explicit information about the payoff function. Subjects see only the quantities and payoffs of each oligopolist after every period. In line with theoretical predictions and previous experimental findings, duopolies and...

Social interactions predominantly take place under the shadow of the future. Previous literature explains cooperation in indefinitely repeated prisoner's dilemma as predominantly driven by self-interested strategic considerations. This paper provides a causal test of the importance of social...

In a large family of solution concepts for boundedly rational players - allowing players to be imperfect optimizers, but requiring that better responses are chosen with probabilities at least as high as those of worse responses - most of Thompson's inessential transformations for the strategic...