The states of the world are possible sequences of pictures that both the manager and employee have in front of them. The pictures are of complex office environments, in which there are several people, objects, and activities. The pictures all overlap substantially in content, but also all have...

The studies were designed to test whether active naturally-occurring markets could be manipulated experimentally in a way that permitted statistically powerful identification of whether manipulation generally works (rather than anecdotal evidence). The studies also serve as a reminder that true...

This chapter describes a very general approach to learning in games: experience-weighted attraction (EWA) learning. This approach strives to explain, for every choice in an experiment, how that choice arose from players' previous behavior and experience, using a general model which can be...

This chapter reviews recent experimental data testing game theory and behavioral models that have been inspired to explain those data. The models fall into four groups: in cognitive hierarchy or level- k models, the assumption of equilibrium is relaxed by assuming agents have beliefs about other...

The acknowledged importance of uncertainty in economic decision making has stimulated the search for neural signals that could influence learning and inform decision mechanisms. Current views distinguish two forms of uncertainty, namely risk and ambiguity, depending on whether the probability...

Neuroeconomics uses knowledge about brain mechanisms to inform economic analysis, and roots economics in biology. It opens up the "black box" of the brain, much as organizational economics adds detail to the theory of the firm. Neuroscientists use many tools— including brain imaging, behavior...

Market experiments designed to test whether individual errors are reduced by markets generally indicate that errors do make prices or trading volume irrational. For example, in markets for assets of uncertain value a "representativeness"- based theory predicts deviations of prices from Bayesian...

Linear models which fit regression equations to clinical judgments. then use the fitted parts of judgments as "bootstrapped" judgments, have outperformed clinical judgments in many tasks. Empirically, the phenomenon has been pervasive, but general conditions for the success of bootstrapping...