In recent years, experiments have documented a new mechanism that leads to failures of
profit maximization: the failure of contingent thinking (FCT). This article summarizes key …

Most applications of game theory assume equilibrium, justified by presuming either that
learning will have converged to one, or that equilibrium approximates people's strategic …

A strategy is obviously dominant if, for any deviation, at any information set where both
strategies first diverge, the best outcome under the deviation is no better than the worst …

In some experiments participants make multiple decisions; this feature facilitates gathering a
considerable amount of incentivized data over the course of a compact session. A …

A critical question facing experimental economists is whether behavior inside the laboratory
is a good indicator of behavior outside the laboratory. To address that question, we build a …

Many information structures generate correlated rather than mutually independent signals,
the news media being a prime example. This article provides experimental evidence that …

We use a simple, three-item test for cognitive abilities to investigate whether established
behavioral biases that play a prominent role in behavioral economics and finance are …

We develop an equilibrium framework that relaxes the standard assumption that people
have a correctly specified view of their environment. Each player is characterized by a …

News reports and communication are inherently constrained by space, time, and attention.
As a result, news sources often condition the decision of whether to share a piece of …

This paper proposes a structural nonequilibrium model of initial responses to incomplete‐
information games based on “level‐k” thinking, which describes behavior in many …