We argue that it is natural to study social institutions within the framework of standard game theory (i.e., only by resorting to concepts like players, actions, strategies, information sets, payoff functions, and stochastic processes describing the moves of nature, which constitute a stochastic...

This paper studies dynamic, endogenous institutional change. We introduce the class of dynamic political games (DPGs), dynamic games in which future political aggregation rules are decided under current ones, and the resulting institutional choices do not affect payoffs or technology directly. A...

This paper applies the theory of equilibrium in mixed strategies in an inspection game model to describe the strategic interaction in the stolen base play in baseball. A parsimonious simultaneous-move game model offers predictions about how the observable conduct of the teams on offense and...

We show that every bounded, continuous at infinity game of perfect information has an epsilon-perfect equilibrium. Our method consists of approximating the payoff function of each player by a sequence of simple functions, and to consider the corresponding sequence of games, each differing form...

We analyze a repeated first-price auction in which the types of the players are determined before the first round. It is proved that if every player is using either a belief-based learning scheme with bounded recall or a generalized fictitious play learning scheme, then for sufficiently large...

We test the effect of players' moods on their behavior in a gift-exchange game. In the first stage of the game, player 1 chooses a transfer to player 2. In the second stage, player 2 chooses an effort level. Higher effort is more costly for player 2, but it increases player 1's payoff. We say...

Bayesian Statisticians, decision theorists, and game theorists often use Bayesian representations to describe the probability distribution governing the evolution of a stochastic process. Generally, however, one given distribution has infinitely many different Bayesian representations. This...

We show that monetary trading is simple, self-enforcing, symmetric, and irreducible in a natural framework. Furthermore, we show that the utility for each economic agent is at least as big under the monetary system as under any other simple, self-enforcing, symmetric, and irreducible trading...

We study whether we can weaken the conditions given in Reny (1999) and still obtain existence of pure strategy Nash equilibria in quasiconcave normal form games, or, at least, existence of pure strategy $\varepsilon-$equilibria for all epsilon0. We show by examples that there are: (1)...

While many learning models have been proposed in the game theoretic literature to track individuals’ behavior, surprisingly little research has focused on how well these models describe human adaptation in changing dynamic environments. Analysis of human behavior demonstrates that people are...