Economists have two standard explanations for the absence of substantial nominal wage pressures in the current macroeconomic climate. The first, and more traditional, view asserts that the NAIRU has drifted downward over the last decade, while the second posits the establishment of a "new...

We compare Colman's proposed "psychological game theory" with the existing literature on psychological games (Geanakoplos, Pearce and Stachetti 1989), in which beliefs and intentions assume a prominent role. We also discuss the experimental evidence on intentions, with a particular emphasis on...