We study the evolution of imitation behaviour in a differentiated market where firms are located equidistantly on a (Salop) circle. Firms choose price and quantity simultaneously, leaving open the possibility for non-market-clearing outcomes. The strategy of the most successful firm is imitated....

Individuals are randomly matched to play a <InlineEquation ID="IEq1"> <EquationSource Format="TEX">$$2\times 2$$</EquationSource> <EquationSource Format="MATHML"> <math xmlns:xlink="http://www.w3.org/1999/xlink"> <mrow> <mn>2</mn> <mo>×</mo> <mn>2</mn> </mrow> </math> </EquationSource> </InlineEquation> coordination game where the Pareto efficient and risk dominant equilibria differ. Players choose strategies by imitating the strategy of the most successful individual they observe. So, while individuals interact globally,...</equationsource></equationsource></inlineequation>

Inspired by the behavior in repeated guessing game experiments, we study adaptive play by populations containing individuals that reason with different levels of cognition. Individuals play a higher order best response to samples from the empirical data on the history of play, where the order of...