We introduce a solution concept for signaling games, called Rational Hypothesis Testing Equilibrium (HTE). Beliefs are updated via Ortoleva’s (2012) Hypothesis Testing model, allowing for conditioning on information sets off the path. Hypotheses are beliefs about rational strategies of the...

We study communication in ambiguous environments. Agents communicate individual decisions sequentially. Based on the signal that an agent receives, she revises her private information. When signals are ambiguous, we show that agents may agree to disagree forever. Although the learning process...

We show that for many classes of symmetric two-player games, the simple decision rule "imitate-the-best" can hardly be beaten by any other decision rule. We provide necessary and sufficient conditions for imitation to be unbeatable and show that it can only be beaten by much in games that are of...