A computational procedure, Simulated Fictitious Play (SFP), is introduced to approximate equilibrium solutions for n-person, non-cooperative games with large strategy spaces. A variant of the iterative solution process fictitious play (FP), SFP is first demonstrated on several small n-person...

We develop a model of price competition between insurers where insurers maximize expected profit subject to a solvency constraint. Insurers base prices in part on expected losses, the estimates of which are updated in a Bayesian fashion. We assume that insurers are overconfident—they...