In dynamic environments where the strategic setting evolves across time, the specific rule governing the transitions can substantially alter the incentives agents face. This is particularly true when history‐dependent strategies are used. In a laboratory study, we examine whether subjects...

This paper experimentally examines the selection of equilibria in dynamic games. Our baseline treatment is a two-state extension of an indefinitely repeated prisoner's dilemma, which we modify in series of treatments to study the focality of efficiency and symmetry, the effect dynamic and static...

This paper experimentally examines the selection of equilibria in dynamic games. Our baseline treatment is a two-state extension of an indefinitely repeated prisoner's dilemma, which we modify in series of treatments to study the focality of efficiency and symmetry, the effect dynamic and static...

We evaluate dynamic oligopoly estimators with laboratory data. Using a stylized en-try/exit game, we estimate structural parameters under the assumption that the data are generated by a Markov-perfect equilibrium (MPE) and use the estimates to predict counterfactual behavior. The concern is that...

Dynamic oligopoly estimators have become a workhorse for industry studies in empirical industrial organization. We evaluate parameter recovery and counterfactual predictions for such environments using laboratory data. In our experimental setting we characterize a symmetric Markov-perfect...

This paper studies experimentally the selection of strategies in a canonical dynamic environment, the dynamic common pool game. The main goal is to evaluate if behavior can be rationalized with strategies that condition on past play that can support efficient outcomes, or with stationary Markov...

We evaluate dynamic oligopoly estimators with laboratory data. Using a stylized en-try/exit game, we estimate structural parameters under the assumption that the data are generated by a Markov-perfect equilibrium (MPE) and use the estimates to predict counterfactual behavior. The concern is that...