We illustrate one way in which a population of boundedly rational individuals can learn to play an approximate Nash equilibrium. Players are assumed to make strategy choices using a combination of imitation and innovation. We begin by looking at an imitation dynamic and provide conditions under...

In has been frequently observed, in both economics and psychology, that individuals tend to conform to the choices of other individuals with whom thy identify. Can such conformity be consistent with self-interested behaviour? To address this question we use the framework of games with incomplete...

We explore whether individuals are averse to telling a Pareto white lie-a lie that benefits both themselves and another. We first review and summarize the existing evidence on Pareto white lies. We find that the evidence is relatively limited and varied in its conclusions. We then present new...