We endogenize the precision parameter "lambda" of logit quantal response equilibrium (LQRE) (McKelvey and Palfrey, 1995). In the first stage of an endogenous quantal response equilibrium (EQRE), each player chooses precision optimally subject to costs, given correct beliefs over other players'...

This paper examines a number of widely used liquidity measures to assess the consistency and reliability of the measures across different liquidity scenarios. A review is conducted of the various measures (based on Gabrielsen, Marzo and Zagaglia, 2011). This paper expands upon their review, by...

We present a parametric learning model of players' dynamic and possibly out-of-equilibrium beliefs about other players' preferences that also incorporates random utility (noise). We estimate the model using the data from the four-country ultimatum game experiments of Roth et al. (1991). We find...

Categorization is a core psychological process central to consumer and managerial decision-making. While a substantial amount of research has been conducted to examine individual categorization behaviors, relatively little is known about the group categorization process. In two experiments, we...

We study an axiomatic variant of quantal response equilibrium (QRE) for normal form games that augments the regularity axioms (Goeree et al., 2005) with various forms of “symmetry” across players and actions. The model refines regular QRE, generalizes logit QRE, and is tractable in many...

Theoretical study identifying one modality with conditions necesary for the financial stabilization of an inherently unstable system; and 5040 other unstable dynamic modes. It draws on knowledge made available by the academic field of Control Engineering.

We explain the main features of the results of the four-country ultimatum bargaining experiments of Roth, Prasnikar, Okuno-Fujiwara, and Zamir (1991) by a social utility model. The specification of social utility of a player has two parts: a linear combination of the monetary payoffs of the...

We present and estimate a parametric learning model of players' dynamic and possible out-of-equilibrium beliefs about other players'social preferences using the data from the four-country ultimatum game experiments of Roth et al. (1991). The model allows for each of the three leading factors...

If we reassess the rationality question under the assumption that the uncertainty of the natural world is largely unquantifiable, where do we end up? In this article the author argues that we arrive at a statistical, normative, and cognitive theory of ecological rationality. The main casualty of...

This study explores the forecasting of Major League Baseball game ticket sales and identifies important attendance predictors by means of random forests that are grown from classification and regression trees (CART) and conditional inference trees. Unlike previous studies that predict sport...