The possibility that asset markets could be strategically manipulated by large informed traders has fascinated social scientists and market observers for years. There is a well-known story of minions of Nathan Rothschild, who was thought to have the fastest carrier pigeons in London, selling...

In the last ten years theory (e.g., Fudenberg and Levine, 1998) and empirical data fitting have provided many ideas about how equilibria arise in games or markets. This short chapter describes a very general approach to learning in games: "experience-weighted attraction" (EWA) learning. This...

The capacity of markets to aggregate information has been conclusively demonstrated but the limitations of that capacity have still not been fully explored. In this paper, we demonstrate the existence of "information traps". These traps appear to be a sort of equilibrium in which information...

We report the results of experiments on economic decisions with two populations, one of healthy elderly individuals (average age 82) and one of younger students (average age 20). We examine confidence, decisions under uncertainty, differences between willingness to pay and willingness to accept...