Strategic settings are often complex and agents who lack deep reasoning ability may initially fail to make optimal decisions. This paper experimentally investigates how the decision making quality of an agent's opponent impacts learning-by-doing (LBD) and learning-by-observing (LBO) in a...

The Stackelberg duopoly is a fundamental model of sequential output competition. The equilibrium outcome of the model results in a first-mover advantage where the first-moving firm produces more output, and earns larger profits, relative to the second-moving firm. Huck, Müller, and Normann...