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We analyze a repeated first-price auction in which the types of the players are determined before the first round. It is proved that if every player is using either a belief-based learning scheme with bounded recall or a generalized fictitious play learning scheme, then after sufficiently long time, the players' bids are in equilibrium in the one-shot(More)
We explore the effects of social distance in experiments conducted over the Internet on three continents, in classroom laboratory sessions conducted in Israel and Spain, and in computer sessions pairing participants from different states, one in Texas and the other in California. Our design elicits individual behavior profiles over a range of contingencies,(More)
The paper studies a large class of bounded-rationality, probabilistic learning models on strategic-form games. The main assumption is that players ''recognize'' cyclic patterns in the observed history of play. The main result is convergence with probability one to a fixed pattern of pure strategy Nash equilibria, in a large class of ''simple games'' in(More)
We explore the effects of social distance on reciprocal behavior in an experiment conducted over the Internet on three continents and in classroom laboratory sessions conducted in Israel and Spain. Our design elicits individual behavior profiles over a range of contingencies, enabling us to identify hetero-geneity among our participants. We find that many(More)
We present experimental evidence suggesting that human subjects penalize lotteries for complexity. Our results contradict the assumption that human agents follow the discounted expected utility model in multi-period choice with uncertainty. In particular, we show that the buying price o€ered for an inferior, simple multi-period lottery may sometimes(More)
We present experimental evidence suggesting that insurance policyholders ignore the possibility of damage recurrence when deciding whether to submit a claim for a current small loss. The neglect results in successive claiming for current small damage levels. When the probability of damage recurrence is disclosed, subjects increase their cutoff damage for(More)