In dynamic environments where the strategic setting evolves across time, the specific rule governing the transitions can substantially alter the incentives agents face. This is particularly true when history‐dependent strategies are used. In a laboratory study, we examine whether subjects...

We experimentally study the Gale and Shapley (1962) mechanism, which is utilized in a wide set of applications, most prominently the National Resident Match- ing Program (NRMP). Several insights come out of our analysis. First, only 48% of our observed outcomes are stable, and among those a...

Accounting for sample selection is a challenge not only for empirical researchers, but also for the agents populating our models. Yet most models abstract from these issues and assume that agents successfully tackle selection problems. We design an experiment where a person who understands...