Subjects in a laboratory experiment withdraw earnings from a cash reserve evolving according to an arithmetic Brownian motion in near‐continuous time. Aggressive withdrawal policies expose subjects to risk of bankruptcy, but the policy that maximizes expected earnings need not maximize the...

Evolutionary games are introduced as models for repeated anonymous strategic interaction: actions (or behaviors) which are more "fit," given the current distribution of behaviors, tend over time to displace less fit behaviors. Cone fields characterize the continuous-time processes compatible...

This paper reports a laboratory experiment that examines price formation in the single call market. The experiment design is intended to enhance the predictive power of the Bayesian Nash equilibrium (BNE) theory for this trading institution. The data support several qualitative implications of...

This paper develops a nonparametric theory of preferences over one's own and others' monetary payoffs. We introduce "more altruistic than" (MAT), a partial ordering over such preferences, and interpret it with known parametric models. We also introduce and illustrate "more generous than" (MGT),...