A computational procedure, Simulated Fictitious Play (SFP), is introduced to approximate equilibrium solutions for n-person, non-cooperative games with large strategy spaces. A variant of the iterative solution process fictitious play (FP), SFP is first demonstrated on several small n-person...

In alliances jointly developing product and market, we first investigate how (a) the number of networks competing to develop a product, (b) the number of alternative technology platforms, and (c) market sensitivity to product development expenditures affect investments of partnering firms. We...

Market games constitute a class of cooperative n-person games with sidepayments in which several coalitions may form simultaneously. In order to study coalition forming behavior in such games and to test the descriptive power of four major solution concepts that yield differing prescriptions for...

We study a multiperiod bargaining mechanism in which a seller negotiates with a buyer over the price of an indivisible good. It is common knowledge that the good has zero value to the seller. Its value to the buyer is privately known, distributed independently of the seller's value according to...

Focusing on sellers' pricing decisions and the ensuing seller-buyer interactions, we report an experiment on dynamic pricing with scarcity in the form of capacity constraints. Rational expectations equilibrium solutions are constructed and then tested experimentally with subjects assigned the...

Focusing on sellers’ pricing decisions and the ensuing seller-buyer interactions, we report an experiment on dynamic pricing with scarcity in the form of capacity constraints. Rational expectations equilibrium solutions are constructed and then tested experimentally with subjects assigned the...