De Meyer and Moussa Saley explains endogenously the appearance of Brownian Motion in finance by modelling the strategic interaction between two asymmetrically informed market makers with a zero-sum repeated game with One-sided information. In this paper, we generalize this model to a setting of...

We introduce the “relative diffuseness” assumption to characterize the differences between payoff-relevant and strategy-relevant diffuseness of information. Based on this assumption, the existence of pure strategy equilibria in games with incomplete information and general action spaces can...

In this paper we test the effect of descriptive features on initial strategic behavior in normal form games, where descriptive are all those features that can be modified without altering the (Nash) equilibrium structure of a game. We observe that our experimental subjects behave according to...

The evolution of boundedly rational rules for playing normal form games is studied within stationary environments of stochastically changing games. Rules are viewed as algorithms prescribing strategies for the different normal form games that arise. It is shown that many of the “folk...

The evolution of boundedly rational rules for playing normal form games is studied within stationary environments of stochastically changing games. Rules are viewed as algorithms prescribing strategies for the different normal form games that arise. It is shown that many of the folk results of...