We study a linear location model (Hotelling, 1929) in which n (with n = 2) boundedly rational players follow (noisy) myopic best-reply behavior. We show through numerical and mathematical analysis that such players spend almost all the time clustered together near the center, re-establishing the...

In this paper we experimentally compare three implementations of Winter demand commitment bargaining mechanism: a one-period implementation, a twoperiod implementation with low and with high delay costs. Despite the different theoretical predictions, our results show that the three different...

How much of the failures to achieve Pareto efficient outcome observed in a simple 2 x 2 dominance solvable game can be attributed to strategic uncertainty and how much is actually due to individual bounded rationality? We address this question by conducting a set of experiments involving two...