Many scholars turn to emotions to understand irrational behavior. We do the opposite: we turn to rationality and game theory to understand people’s emotions. We discuss a striking theory of emotions that began with the game theory of credible threats and promises, then was enriched by...

Decision analysis has traditionally been applied to choices under uncertainty involving a single decision maker. Game theory has been applied to solving games of strategic interaction between two or more players. Building upon recent work of van Binsbergen and Marx (2007. Exploring relations...

This article revisits the 2 × 2 penalty kick game and seeks to explain differences in mixed strategies associated with different player types and the relative performance of these player types. The authors show that (a) a kicker’s general ability is a reliable indicator of his success rate,...

The purpose of this paper is to reexamine the seminal belief elicitation experiment by Nyarko and Schotter (2002) under the prism of pattern recognition. Instead of modeling elicited beliefs by a standard weighted fictitious play model this paper proposes a generalized variant of fictitious...

In a generic finite normal form game with 2(alpha) + 1 Nash equilibria, at least alpha of the equilibria are nondegenerate mixed strategy equilibria (that is, they involve randomization by some players).

Many scholars turn to emotions to understand irrational behavior. We do the opposite: we turn to rationality and game theory to understand people's emotions. We discuss a striking theory of emotions that began with the game theory of credible threats and promises, then was enriched by...