We develop a framework for categorization in games, applicable both to multistage games of complete information and static games of incomplete information. Players use categories to form coarse beliefs about their opponents' behavior. Players best-respond given these beliefs, as in analogy-based...

In this paper, we develop a novel learning model that combines directional learning and automata reinforcement. We show that directional learning can be defined on a cyclic order in addition to its original domain (interval) and that pattern learning by reinforcing parts of automata [Chernov,...

Forming beliefs or expectations about others’ behavior is fundamental to strategy as it codetermines the outcomes of interactions in and across organizations. In the game-theoretic conception of rationality, agents reason iteratively about each other to form expectations about behavior....