We ran three-round sequential bargaining experiments in which the perfect equilibrium offer was $1.25 and an equal split was $2.50. Subjects offered $2.11 to other subjects, $1.84 to "robot" players (who are known to play subgame perfectly), and $1.22 to robots after instruction in backward...

My goals in this paper are: (i) To give a pithy, opinionated summary of what has been learned about bounded rationality in individual decision making from experiments in economics and psychology (drawing on my 1995 Handbook of Experimental Economics chapter); and (ii) mention some promising new...

We describe a general model, 'experience-weighted attraction' (EWA) learning, which includes reinforcement learning and a class of weighted fictitious play belief models as special cases. In EWA, strategies have attractions which reflect prior predispositions, are updated based on payoff...