We describe two-person simultaneous play games. First, we use a zero sum game to illustrate minimax, dominant and best response strategies. We illustrate Nash Equilbria in the Prisoner's Dilemma and the Battle of the Sexes Game, and distinguish three types of Nash Equilibria: a pure strategy, a...

What is a rational decision-maker supposed to do when facing an unfamiliar problem, where there is uncertainty but no basis for making probabilistic assessments? One answer is to use a form of expected utility theory, and assume that agents assign their own subjective probabilities to each...

We examine the effect of higher order beliefs on the ability of decentralized decision makers to coordinate and take advantage of improvements in information transparency that can increase welfare. Theories that address this question have not been empirically explored. We study coordination in a...