In John Nash’s proofs for the existence of (Nash) equilibria based on Brouwer’s theorem, an iteration mapping is used. A continuous- time analogue of the same mapping has been studied even earlier by Brown and von Neumann. This differential equation has recently been suggested as a plausible...

We study a model where agents face a continuum of two-player games and categorize them into a finite number of situations to make sense of their complex environment. Agents need not share the same categorization. Each agent can cooperate or defect, conditional on the perceived category. The...